Sell Your Bitcoin and Cry Later? Tim Draper Backs a Way out as BTC Holders Face Brutal Liquidity Trap

Bitcoin holders can now tap liquidity without selling, as Tim Draper backs Sats Terminal’s non-custodial bitcoin-backed lending marketplace designed to preserve long-term upside while avoiding custody risks and forced exits.

Never Sell Your BTC Again? Tim Draper Backs a Non-Custodial Borrowing Market as Liquidity Fear Hits Holders

Famous investor and venture capitalist Tim Draper posted on social media platform X on Jan. 5 a forceful endorsement of Sats Terminal, arguing that bitcoin holders no longer need to sacrifice long-term upside to access liquidity during moments of financial pressure.

Draper described:

Bitcoin holders face a brutal choice when they need cash. Sell your BTC (and cry later). Or spend 6 hours comparing complicated CeFi platforms with confusing rates and custody risks. Neither option makes sense.

The venture capitalist then pointed to his firm’s involvement with the company, stating: “Our portfolio company, Sats Terminal, has just launched Borrow, the first non-custodial marketplace for bitcoin-backed loans.”

He expanded on why the product matters for long-term bitcoin holders by outlining how Borrow is structured to remove the usual trade-offs between liquidity and ownership. Draper described the platform as a single marketplace that brings together bitcoin-backed lenders from both decentralized and centralized venues, allowing borrowers to compare options in one place while retaining control of their assets. He emphasized that the model is non-custodial, does not require identity verification, and provides full pricing transparency, with loan-to-value ratios, fees, terms, and effective rates visible in real time before committing. Draper also pointed to a simplified borrowing flow that enables users to move directly from bitcoin collateral to stablecoin liquidity, positioning Borrow as a practical alternative to selling bitcoin for those who prioritize self-custody and long-term exposure.

Read more: Tim Draper Bullish on Bitcoin Becoming Currency for Robots and AI

In its own messaging on X, Sats Terminal underscored the long-term cost of selling bitcoin during moments of short-term financial pressure. “Remember, when you sold your Bitcoin at $20k to buy a car? Or when you sold at $40k in 2023 to put the down payment for your mortgage? Or paid for the wedding with BTC when it was $70k? You probably don’t even have that car anymore, while BTC went 450% up since then,” the company wrote, adding:

See the pattern? Bitcoin is the ultimate asset, and you should never sell your BTC! You need liquidity – borrow against it.

The post reinforced the firm’s core argument that borrowing against bitcoin can preserve long-term exposure while addressing immediate cash needs, positioning the product as an alternative to irreversible sales during periods of temporary liquidity demand.

FAQ ⏰

• What is Sats Terminal Borrow?
  Sats Terminal Borrow is a non-custodial marketplace that aggregates bitcoin-backed loan offers without requiring KYC.
• Why does Tim Draper support Sats Terminal?
  Tim Draper says the platform lets bitcoin holders access liquidity without selling BTC or giving up custody.
• How does borrowing against bitcoin differ from selling?
  Borrowing allows holders to keep bitcoin exposure while meeting short-term cash needs.
• What risks does Sats Terminal aim to reduce?
  The platform focuses on reducing custody risk, opaque rates, and the opportunity cost of selling bitcoin.