BlockFi May 2021 Rate Changes
BlockFi has announced its monthly rates for May 2021. While the market rate to lend or borrow bitcoin is a fairly new option for Bitcoiners looking to earn a yield or increase their sat stack, it has been falling steadily over the last 3 months. These rates are a crypto-native parallel to quarterly central bank rate or prime rate announcements.
With rates 10x higher for Bitcoin than on traditional dollar-denominated savings accounts, it’s hard to sort the fact from fiction on whether these rates are driven by the “Contango” trade or actually be the subsidy from venture capital investment in platforms who are looking to attract new users with the hope their product is sticky enough to stem outflows.
BlockFi
Tier 1 BTC falls to just 0.5 Bitcoin at 5% instead of up 1 Bitcoin at 6%
Tier 2 BTC moves to amounts above 0.5 Bitcoin up to 20 Bitcoin at 2%
Tier 3 BTC for holders of greater than 20 Bitcoin remains at only 0.5%
We might expect rates at Competitors LEDN, NEXO, and Crypto.com to follow suit.
