According to Milk Road, borrowing against Bitcoin can lead to significant losses primarily due to panic selling and over-leveraging. They emphasize the importance of understanding the risks and strategies involved in borrowing against BTC to protect your assets and ensure financial stability. This involves maintaining a low Loan-to-Value (LTV) ratio and choosing reliable platforms. For traders, this insight is crucial in preventing loss and maximizing Bitcoin's potential.

According to EmberCN, a cryptocurrency whale recently borrowed 10.2 million USDT through a looped loan strategy on Aave to purchase 109.2 WBTC at $93,331 each. This move increases the whale's total holding to 256.2 WBTC, valued at $24.12 million, with an average cost of $87,162 per WBTC. However, the leverage on this long BTC position shows a low health factor of 1.14, with a liquidation price set at $82,457. These figures indicate potential risks and opportunities in the current market conditions.