With Bitcoin trading between $95,000 and $97,000, Xapo Bank CEO Seamus Rocca noted increasing investor willingness to borrow using Bitcoin as collateral. At the Token2049 event in Dubai, Rocca highlighted the shift in investor sentiment from short-term speculation to a more long-term strategy, attributing this to rising institutional adoption. He explained that Xapo Bank provides Bitcoin-backed loans with loan-to-value (LTV) ratios of 20%, 30%, and 40%, thus allowing borrowers to secure up to $1 million without selling their Bitcoin. Rocca emphasized that these conservative LTV levels protect borrowers from liquidation during price fluctuations, given that Bitcoin would need to fall below $40,000 for that to occur. Furthermore, borrowing against Bitcoin allows investors to manage unexpected expenses without liquidating their assets, maintaining their investment exposure while accessing much-needed liquidity. This reflects a maturation in the Bitcoin market and suggests a transition from a ‘hodl’ mentality to more flexible asset management strategies among long-term holders.

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