Bitcoin lending bounces back, Wall Street credit takes lead as $60,000 level looms
Silicon Valley Bank, part of First Citizens BancShares, put bitcoin-backed loans in front of credit investors again, saying the business has shifted from failed crypto firms to overcollateralized lending, bank lines, and rated ABS. CoinDesk and FinanceFeeds reported on the change in the last 24 hours. Bitcoin traded under $60,000 at the time. For investors, the key is in the loan terms. A lender who requires $2 in bitcoin for every $1 lent and who liquidates at 80% loan-to-value gets a 37.5% price cushion on bitcoin before forced selling, if there’s no repayment or collateral added. At the price on the dateline, liquidation would hit around $37,100. SVB said Ledn hasn’t reported losses from collateralized consumer loans after bitcoin’s 48% slide from last year’s high.
