Bitcoin-backed loans mitigate market volatility, reveal importance of decentralized data
ByAinvest
Sunday, Nov 2, 2025 4:45 am ET1min read
BTC--
On October 10, 2025, Bitcoin dropped from $122K to $102K in under an hour, wiping out $19B+ in leveraged positions. Companies and traders using BTC as collateral for loans maintained liquidity without selling, with automated liquidation systems locking in profits during the crash. Decentralized data, such as Chainlink oracle pricing, prevented unnecessary liquidations, enhancing risk management in volatile markets.
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