29-8-2025 – Bitcoin’s recent price rally has prompted investors to weigh selling assets against holding for further appreciation, spurring renewed exploration of crypto lending options. This approach enables holders to borrow against their Bitcoin without liquidating positions, preserving exposure to potential upside while accessing immediate funds.
The dilemma arises as Bitcoin’s value climbs, echoing past market cycles where investors faced tough choices. Crypto lending, once tarnished by the 2022 collapses of platforms like Celsius and BlockFi that led to billions in user losses, is now seeing a tentative revival in 2025. Decentralized finance protocols on blockchains like Ethereum are attracting users with transparent, code-based lending, while centralized exchanges bolster security through advanced audits and insurance.
Regulatory shifts, including clearer U.S. guidelines from the SEC, are fostering institutional involvement, though experts caution that volatility remains a core risk. Despite these advancements, the sector’s safety is under scrutiny, with questions about whether enhanced measures truly mitigate systemic threats.
