It is not wise to take a loan to put money into a highly volatile asset like Bitcoin. It is likely that the market will remain volatile for quite some time. I mean years, many years.
That means it is very easy to get underwater on a loan so its a bad idea.
Still a bad idea to borrow capital unless you are quite wealthy and can easily assume the cost of the loan but unless you have some way of risk managing your holdings you have uncovered risk. To give some context. When bitcoin started falling after hitting its peak Dec 2017, it took 40 months to recover to that Dec 2017 price. Then it skyrocketed 300% to peak in April 2021 when it came off again.
I run the
RMAAS risk management service on my bitcoins. Bitcoin is still below the April 2021 peak, but because the RMAAS software hedged my position, by May 11 my entire BTC position was hedged in USD. The RMAAS model bought back in last month and my account hit new highs, and bitcoin is still $10,000 below its new highs.
I'm not advising anyone, but for me this is the right choice.