Core Insights - Bitcoin-backed borrowing is evolving from short-term cash solutions to long-term financial planning, with over 52% of loans in 2025 having 365-day terms [1][3][4] - The trend reflects a maturation of Bitcoin as an asset, with holders treating it more like property rather than a speculative investment [2][4] Group 1: Market Behavior - In 2025, Bitcoin-backed loan volumes reached approximately $2 billion, with regulated players dominating the market, replacing riskier lending models [6] - Borrowers are increasingly using Bitcoin as productive collateral, allowing them to unlock liquidity while retaining their holdings during price volatility [4][5] Group 2: Impact on Investors - The shift in borrowing behavior reduces the psychological pressure on regular investors to sell during market dips, promoting a mindset of planning around Bitcoin as a long-term asset [5] - The demand for loans tends to rise during periods of Bitcoin market volatility, as holders seek flexibility rather than immediate exits [5]