The rise of crypto-backed loans

There’s never a dull moment onchain. Here’s what you need to know this week:

Bitcoin approached $80K. Also: BTC whales just made their biggest purchase in more than a year, and crypto ETFs extended their inflow streak.

Crypto-backed loans are gaining popularity. A closer look at how they work and why more people are using them.

Prediction markets on the pro basketball playoffs. Which teams do traders think will win their first-round matchups?

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MARKET BYTES

BTC spikes past $79,000 following Iran ceasefire extension

Since the Iran conflict began in late February, crypto prices have generally dipped when tensions escalate and climbed when things calm down. In just the last five days, bitcoin prices passed $78,000 on the original news of a temporary ceasefire, dipped below $74,000 on Sunday when the deal looked shaky, and spiked back above $79,000 today following President Trump’s announcement last night that he was extending the truce. Most other major tokens also saw gains.

Markets will be paying close attention to what happens next. “BTC’s near-term direction remains highly dependent on developments in the macroeconomic and geopolitical landscape,” Paul Howard, senior director at market maker Wincent, told Bloomberg.

Here’s more news you should know about…

Bitcoin whales just made their biggest purchase in more than a year

Last week, bitcoin whales (wallets holding between 100 and 10,000 BTC) bought 45,000 BTC worth around $3.5 billion, according to data cited by Bitcoin Magazine — part of a three-month accumulation trend that has seen long-term holders add 1 million BTC to cold storage.

“Fresh onchain data revealed that the cryptocurrency’s largest holders have been accumulating at their fastest pace in over a year — a confluence of whale demand and easing geopolitical risk that is reshaping the near-term price picture,” noted the publication. “This is a conviction-driven positioning rather than opportunistic dip-buying.”

Strategy’s strategy… Meanwhile, crypto treasury giant Strategy — which now holds more BTC than BlackRock’s IBIT fund — just made its third-largest purchase ever, buying 34,164 BTC for $2.5 billion, resulting in total holdings that now eclipse 800,000 BTC.

Crypto ETFs extend inflow streak

One of the factors that’s kept bitcoin relatively steady (compared to most other asset classes) during the Iran conflict has been a surge of investment into crypto exchange-traded funds in recent weeks.

“Institutional demand has been a major factor for this BTC strength,” reports The Block. “U.S. spot bitcoin exchange-traded funds pulled in $996.4 million last week, the strongest weekly haul since mid-January.”

Altcoin ETFs that hold XRP, Solana, Avalanche, and Chainlink tallied $100 million in inflows in the same period. And Morgan Stanley’s new BTC ETF, which attracted $100 million in its first seven days of trading, hit $139 million in assets under management on Tuesday.

ETH season? Ethereum ETFs have come roaring back in the last couple of weeks, with seven straight days of inflows as of Friday totalling $425 million, according to SoSo Value data.

LOAN ZONE

Why crypto-backed loans are more popular than ever

As crypto increasingly becomes integrated into the financial mainstream, a newer innovation is seeing significant growth: crypto-backed loans. Last year, crypto-loan issuance hit record highs of more than $73 billion, and that trend is extending into 2026, with institutions like Coinbase expanding crypto-backed loans into international markets.

Analysts say that loans, where tokens like bitcoin or ether are used as collateral, have the potential to reshape global credit markets, especially as major institutions continue to invest heavily in crypto-loan infrastructure.

Here’s what you need to know.

What are crypto backed loans and how do they work?

Crypto-backed loans are simply loans that are secured by using crypto (often BTC) as collateral. Similar to other loans, they have interest rates and collateral requirements. But unlike traditional loans, crypto-backed loans don’t require credit scores or even any paperwork. Instead, they’re issued solely based on a borrower's collateral.

Using a platform like Coinbase, for example, borrowers can access a crypto-backed loan within minutes, worth up to $5 million if backed by BTC; $1 million if backed by ETH; and $100,000 if backed by other assets like XRP, LTC, ADA or DOGE. The loan is paid out in USDC.

With loans always needing to be over-collateralized, lenders and borrowers have a buffer against an asset’s price volatility that helps maintain the health of the loan over time.

What are the benefits of crypto-backed loans?

The biggest advantage of crypto-backed loans is flexibility. Previously, if you wanted to use your bitcoin profits to make a large purchase, you’d have to sell your holdings, miss market movements, and create a potentially significant tax liability. By taking out a loan, investors can maintain their holdings and exposure to the market, while unlocking liquidity that their gains may have accrued.

Crypto-backed loans also often have competitive interest rates. On Coinbase, loan interest rates are currently as low as 5%, far below the national average of 12.27% for personal loans.

What are some use-cases for crypto-backed loans?

Crypto-backed loans are gaining traction across investor classes, from retail users to institutional clients. On Coinbase, which launched crypto-backed loans last year, U.S. users have already taken out more than $2.1 billion in total loans since January 2025, with the service expanding to the U.K. this month.

But the idea isn’t limited to personal loans. Last month it was announced that Coinbase is also collaborating with Better Home & Finance to allow homebuyers to pledge their crypto holdings as collateral for mortgages accepted by Fannie Mae, one of the largest mortgage financers in the U.S.

A survey from last year found that 13% of millennial and Gen Z recent home buyers sold their crypto investments to fund their down payments. A crypto-backed mortgage would have allowed those borrowers to maintain their exposure to crypto markets.

“A lot of those crypto owners and investors have not been able to become homeowners,” Max Branzburg, Coinbase’s head of consumer and business products, told the Wall Street Journal. “We haven’t really had the best way to service that need.”

And it’s not just retail investors: Institutional borrowers are increasingly turning to crypto. JPMorgan, the largest bank in the U.S., has begun letting institutional clients use bitcoin and ether as collateral.

The bottom line…

While crypto loans are still a relatively niche product compared to the $12 trillion bank loan market, they’re poised to grow quickly.

“As digital assets become more mainstream, financing products that integrate crypto into real-world use cases will continue to gain traction,” said Josip Rupena, CEO of crypto-backed loan startup Milo.

Learn more

PREDICTION MARKETS

Who will win in the first round of the basketball playoffs?

The pro basketball playoffs started last week, with 16 teams vying for the sport’s biggest prize: the Larry O’Brien Trophy. What do traders see happening in the first round of games?

Here’s what they’re saying as of Wednesday around 10:00 a.m. PDT.

Series winner: Toronto (5) vs. Cleveland (4)

95%, Cleveland

What markets say: Traders have placed more than $1.5 million in predictions on the first round series between Toronto and Cleveland. Cleveland has been the heavy favorite, but their probability of winning went up significantly after winning the first two games of the series.

What analysts say: “Cleveland’s offense was the fifth-best in the league after the break. It would be a catastrophe for the Cavs to lose this series, and ultimately I don’t trust Toronto’s offense enough to win four games against a quality team.” – Sports Illustrated

Series winner: Minnesota (6) vs. Denver (3)

68%, Denver

What markets say: Denver opened as a heavy favorite, and their probability to win the series rose after winning Game 1. But Minnesota’s Game 2 victory has brought Denver’s probability of winning to its lowest point since the market opened.

What analysts say: “This is the third playoff meeting between these teams in the last four years and the Wolves will rightfully have confidence they can win. The Nuggets’ offense has just been too good this season, though, and the Wolves don't have as much size as they once did to throw at Nikola Jokić, who has destroyed them this season.” – CBS Sports

Series winner: Atlanta (6) vs. New York (3)

65%, New York

What markets say: Traders have placed more than $2 million on predictions for the first round matchup, with New York sitting as the heavy favorite until their last-second loss in Game 2 on Monday night, bringing their probability of winning the series to its lowest point since the market opened.

What analysts say: “I’ll take Brunson as a closer in a playoff series over CJ McCollum and Jalen Johnson, especially since the Knicks’ defense made strides (finishing seventh in the league in defensive rating) after a rough stretch following its NBA Cup win.” – Sports Illustrated

Series winner: Houston (5) vs. Los Angeles L (4)

56%, Los Angeles

What markets say: Traders have placed roughly $10 million in predictions on the series, which has seen LA overcome initial 18% odds to advance by winning the first two games, despite injuries to key players. After Houston’s consecutive losses, their probability of advancing has fallen from 82% before the series started, to 45%.

What analysts say: “The Rockets find themselves in an uncomfortable position returning to Houston. Facing a 2-0 deficit, Houston will have to win four of the next five games to avoid losing in the first round of the playoffs for the second consecutive season.” – CBS Sports

See more first-round predictions