https://www.brookings.edu/articles/the-brutal-truth-about-bitcoin/
Strike, a Bitcoin Lightning payments app led by Jack Mallers, has announced the launch of its “volatility-proof” Bitcoin-backed loans, which are designed to eliminate margin calls and price-based liquidations. This innovative loan structure was developed in collaboration with Tether and aims to reduce the risk of forced liquidation when Bitcoin prices decline. The new offering is part of Strike’s broader lending suite, which now includes a substantial $2.1 billion credit facility to accommodate demand.
This development has implications for the cryptocurrency market, particularly for Bitcoin-related assets. By offering loans with no margin calls or liquidations, Strike provides a more stable financial product for Bitcoin holders, potentially increasing confidence and participation in Bitcoin-based financial services. As a result, the market pricing for STRC, a token linked to Bitcoin performance, has shown significant movement.
Market participants have adjusted their outlook in the STRC market, with the likelihood of STRC hitting $100 by December 31 priced at 54.5% YES. This is a decline from 57% the previous day, but a notable increase from 38% a week ago. The September 30 sub-market shows a 32.5% YES probability, indicating varied expectations among market participants.
