How Much Can I Borrow Against 1 Bitcoin?

Your borrowing power against 1 Bitcoin depends on two factors: **Current BTC Price**: This determines your collateral value. At $100,000 per BTC, you have $100,000 in collateral. **Loan-to-Value (LTV) Ratio**: This is the percentage of your collateral value you can borrow. Common LTV options: - 30% LTV (conservative): $30,000 loan on 1 BTC at $100K - 50% LTV (moderate): $50,000 loan on 1 BTC at $100K - 70% LTV (aggressive): $70,000 loan on 1 BTC at $100K **The formula**: Maximum Loan = BTC Price × LTV Ratio Our calculator uses live Bitcoin prices to show your exact borrowing capacity at each LTV tier.

The amount you CAN borrow and the amount you SHOULD borrow are often different: **Conservative approach (30-40% LTV)** - Borrow: $30,000-$40,000 per BTC at $100K - Safety margin: ~50% before liquidation - Survives: Most bear markets without action needed - Best for: Long-term holders who want to "set and forget" **Moderate approach (40-50% LTV)** - Borrow: $40,000-$50,000 per BTC at $100K - Safety margin: ~35-45% before liquidation - Survives: Significant corrections, may need action in severe crashes - Best for: Active managers comfortable with monitoring **Aggressive approach (50-70% LTV)** - Borrow: $50,000-$70,000 per BTC at $100K - Safety margin: <30% before liquidation - Survives: Only mild corrections without intervention - Best for: Short-term loans or traders hedging positions Choose your approach based on how actively you want to manage and how much volatility you can stomach.

Let's look at practical scenarios for borrowing against 1 BTC: **Scenario 1: Home Down Payment** You need $40,000 for a down payment but don't want to sell your Bitcoin. At 40% LTV, 1 BTC at $100K gives you exactly $40,000—enough for your down payment while maintaining BTC exposure. **Scenario 2: Investment Opportunity** A time-sensitive investment opportunity requires $60,000. At 60% LTV, you can access $60,000 against 1 BTC. Higher risk, but you capture the opportunity without selling. **Scenario 3: Tax Bill** You owe $25,000 in taxes. Rather than selling BTC and creating more taxable gains, borrow at 25% LTV. Ultra-conservative, and you keep your Bitcoin. **Scenario 4: Emergency Fund** Keep a 30% LTV loan open as an emergency credit line. Access $30,000 instantly if needed, only paying interest when you draw funds.

Understanding how Bitcoin price movements affect your 1 BTC loan is critical: **If you borrow $50,000 (50% LTV at $100K BTC)**: BTC drops to $80,000: - Collateral value: $80,000 - Your LTV rises to: 62.5% - Approaching margin call territory BTC drops to $60,000: - Collateral value: $60,000 - Your LTV rises to: 83% - Likely liquidated at most platforms BTC rises to $150,000: - Collateral value: $150,000 - Your LTV drops to: 33% - You could withdraw excess collateral or borrow more This is why starting with lower LTV provides crucial breathing room during Bitcoin's inevitable volatility.

Different platforms offer different terms for Bitcoin-backed loans: **Maximum LTV varies**: Some cap at 50%, others allow up to 70% **Interest rates range**: Typically 4-15% APR depending on platform and LTV **Minimum loans differ**: Some require $1,000 minimum, others $10,000+ **Liquidation thresholds vary**: 70-90% across platforms For a 1 BTC loan, consider: - Does the platform's max LTV meet your borrowing needs? - What's the liquidation threshold and your safety margin? - Are interest rates competitive for your chosen LTV? - Is the platform secure and reputable? Use our calculator to model different scenarios before committing to a platform.