{"id":12030,"date":"2026-08-18T11:32:13","date_gmt":"2026-08-18T11:32:13","guid":{"rendered":"https:\/\/cryptonews.uk.com\/?p=12030"},"modified":"2026-08-18T11:32:13","modified_gmt":"2026-08-18T11:32:13","slug":"bitcoin-faces-its-highest-treasury-hurdle-since-2007-with-22-5b-less-crypto-credit-to-unwind","status":"publish","type":"post","link":"https:\/\/cryptonews.uk.com\/?p=12030","title":{"rendered":"Bitcoin faces its highest Treasury hurdle since 2007 with $22.5B less crypto credit to unwind"},"content":{"rendered":"<p><\/p>\n<div>\n<p>The US 30-year Treasury yield crossed 5.3% on Aug. 17 for the first time since June 2007, the same day Galaxy published a report showing crypto-collateralized lending down more than $22 billion from its peak. Bitcoin hit an intraday high of $64,610.01 that day.<\/p>\n<p>What makes the Treasury move unusual is its direction against the broader macro picture. Soft economic data this week pushed traders to cut the odds of a September Fed move to about 31%, down from 55% a week earlier, the kind of reaction that usually pulls long yields lower.<\/p>\n<p>The 30-year kept climbing anyway, reaching 5.2954% and as high as 5.314% intraday, putting it on track for its first close above 5.3% in nineteen years.<\/p>\n<table>\n<thead>\n<tr>\n<th>Signal<\/th>\n<th align=\"right\">What changed<\/th>\n<th>Read-through for Bitcoin<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Long-end Treasury pressure<\/td>\n<td align=\"right\">30-year yield crossed 5.3%, highest since 2007<\/td>\n<td>Raises the hurdle for non-yielding assets like BTC<\/td>\n<\/tr>\n<tr>\n<td>Fed expectations<\/td>\n<td align=\"right\">September move odds fell to 31% from 55%<\/td>\n<td>Shows the pressure is not just a Fed-hawkishness story<\/td>\n<\/tr>\n<tr>\n<td>Real yields<\/td>\n<td align=\"right\">30-year real yields near 3%, close to an 18-year high<\/td>\n<td>Makes inflation-adjusted Treasury returns more competitive<\/td>\n<\/tr>\n<tr>\n<td>Crypto credit<\/td>\n<td align=\"right\">Collateralized lending down $22.53B from peak<\/td>\n<td>Reduces the leftover credit overhang BTC has to absorb<\/td>\n<\/tr>\n<tr>\n<td>Bitcoin price<\/td>\n<td align=\"right\">BTC traded as high as $64,610.01<\/td>\n<td>The stress test is happening near a live market level<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2>A long-duration problem separate from the Fed<\/h2>\n<p>Reports tied the move to worries over the US fiscal trajectory alongside heavy AI-related corporate debt issuance. The 30-year real yields are sitting near an 18-year high around 3%, as both governments and AI companies ramp up borrowing at once.<\/p>\n<p>Alphabet, Amazon and Meta alone have issued almost $220 billion in bonds so far this year, more than double the $108 billion the same three companies issued across all of 2025.<\/p>\n<div class=\"cs-article-embed\">\n<div class=\"cs-article-embed__media\"> <img loading=\"lazy\" width=\"1024\" height=\"576\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/04\/treasury-yield-bitcoin-liquidity-1024x576.jpg\" alt=\"US Treasury yields spike to highest levels in a year adding new problem for Bitcoin liquidity\" loading=\"lazy\" decoding=\"async\"\/><img loading=\"lazy\" class=\"lazyload\" width=\"1024\" height=\"576\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/04\/treasury-yield-bitcoin-liquidity-1024x576.jpg\" alt=\"US Treasury yields spike to highest levels in a year adding new problem for Bitcoin liquidity\" loading=\"lazy\" decoding=\"async\"\/><\/div>\n<div class=\"cs-article-embed__body\"> <span class=\"cs-article-embed__related-reading\">Related Reading<\/span><\/p>\n<h3 class=\"cs-article-embed__title\">US Treasury yields spike to highest levels in a year adding new problem for Bitcoin liquidity<\/h3>\n<p>Bitcoin\u2019s next move now runs through Treasury yields, oil pressure, and Fed liquidity as markets test whether risk demand can hold near resistance.<\/p>\n<p> <span class=\"cs-article-embed__meta-item\">Apr 30, 2026<\/span> <span class=\"cs-article-embed__meta-divider\">\u00b7<\/span> <span class=\"cs-article-embed__meta-item\">Liam &#8216;Akiba&#8217; Wright<\/span><\/p>\n<\/div><\/div>\n<p>That borrowing wave competes directly with Bitcoin for long-duration capital, since investors can now lock in a real, inflation-adjusted return from Treasuries while Bitcoin still pays no yield natively.<\/p>\n<p>Crypto enters this stretch with considerably less collateralized debt than it carried at its last peak.<\/p>\n<p>Galaxy&#8217;s Q2 2026 leverage report puts crypto-collateralized lending at $56.16 billion, down $11.33 billion in the quarter alone and $22.53 billion below the $78.69 billion high the market reached in the third quarter of 2025.<\/p>\n<figure id=\"attachment_555895\" aria-describedby=\"caption-attachment-555895\" style=\"width: 954px\" class=\"wp-caption aligncenter\"><img fetchpriority=\"high\" decoding=\"async\" class=\"size-full wp-image-555895\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/08\/Screenshot-2026-08-18-103018.jpg\" alt=\"Crypto Lending Market\" width=\"954\" height=\"499\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/08\/Screenshot-2026-08-18-103018.jpg 954w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/08\/Screenshot-2026-08-18-103018-300x157.jpg 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/08\/Screenshot-2026-08-18-103018-768x402.jpg 768w\" sizes=\"(max-width: 954px) 100vw, 954px\"\/><img decoding=\"async\" class=\"lazyload size-full wp-image-555895\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/08\/Screenshot-2026-08-18-103018.jpg\" alt=\"Crypto Lending Market\" width=\"954\" height=\"499\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/08\/Screenshot-2026-08-18-103018.jpg 954w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/08\/Screenshot-2026-08-18-103018-300x157.jpg 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/08\/Screenshot-2026-08-18-103018-768x402.jpg 768w\" data-sizes=\"(max-width: 954px) 100vw, 954px\"\/><figcaption id=\"caption-attachment-555895\" class=\"wp-caption-text\">Crypto Lending Market (Source: Galaxy Research)<\/figcaption><\/figure>\n<p>Borrowing on DeFi lending apps fell from a $47.13 billion peak last September to $21.94 billion by July 21, down more than 53%. Total crypto-related debt has now fallen for three straight quarters.<\/p>\n<h2>How this unwind compares with 2022<\/h2>\n<p>Crypto-backed lending collapsed by more than 55% in a single quarter in 2022. It kept falling another 9% and 29% over the two quarters that followed, as lenders failed and forced liquidations cascaded through the market.<\/p>\n<p>This time the declines have come in steadier steps, roughly 10%, 5% and 17% across three consecutive quarters. Galaxy describes that pattern as gradual risk reduction, a different mechanism than the forced unwind that defined 2022.<\/p>\n<p>The earlier cycle ran on a loop of falling prices, margin calls, and lender failures feeding each other. This one has already done most of its shrinking before the market even faced its current stress.<\/p>\n<table>\n<thead>\n<tr>\n<th>Period<\/th>\n<th>Lending decline pattern<\/th>\n<th>Market mechanism<\/th>\n<th>Why it matters<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>2022 unwind<\/td>\n<td>&gt;55% in one quarter, then -9% and -29%<\/td>\n<td>Forced liquidations, lender failures, margin pressure<\/td>\n<td>Credit stress amplified price declines<\/td>\n<\/tr>\n<tr>\n<td>Current cycle<\/td>\n<td>Roughly -10%, -5%, and -17% over three quarters<\/td>\n<td>Gradual risk reduction<\/td>\n<td>Less evidence of a lender-driven cascade<\/td>\n<\/tr>\n<tr>\n<td>Current futures market<\/td>\n<td>OI rose from $103.2B to ~$114B by end-July<\/td>\n<td>Faster-moving derivatives exposure rebuilt<\/td>\n<td>Liquidation risk remains, but in a different form<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Galaxy&#8217;s data shows total futures open interest ending the second quarter at $103.2 billion. It climbed back to roughly $114 billion by the end of July, up nearly $11 billion in a single month. Bitcoin futures open interest alone dipped to about $45 billion during the quarter before recovering toward $48 billion.<\/p>\n<div class=\"cs-article-embed\">\n<div class=\"cs-article-embed__media\"> <img loading=\"lazy\" width=\"1024\" height=\"538\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/06\/defi-cefi--1024x538.jpg\" alt=\"Systemic risk on the rise as leverage interdependencies tighten between CeFi, DeFi and crypto treasuries\" loading=\"lazy\" decoding=\"async\"\/><img loading=\"lazy\" class=\"lazyload\" width=\"1024\" height=\"538\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2025\/06\/defi-cefi--1024x538.jpg\" alt=\"Systemic risk on the rise as leverage interdependencies tighten between CeFi, DeFi and crypto treasuries\" loading=\"lazy\" decoding=\"async\"\/><\/div>\n<div class=\"cs-article-embed__body\"> <span class=\"cs-article-embed__related-reading\">Related Reading<\/span><\/p>\n<h3 class=\"cs-article-embed__title\">Systemic risk on the rise as leverage interdependencies tighten between CeFi, DeFi and crypto treasuries<\/h3>\n<p>Debt correlations on different crypto sectors and lack of tools to track exposure in real time raise concerns of a systemic risk.<\/p>\n<p> <span class=\"cs-article-embed__meta-item\">Jun 5, 2025<\/span> <span class=\"cs-article-embed__meta-divider\">\u00b7<\/span> <span class=\"cs-article-embed__meta-item\">Gino Matos<\/span><\/p>\n<\/div><\/div>\n<p>Galaxy cautions that open interest is not the same thing as leverage, since some of those positions are hedged against spot holdings and not purely directional bets. Still, the market&#8217;s shape has changed.<\/p>\n<div id=\"cs-inline-newsletter-6a84403a5de59\" class=\"cs-inline-newsletter\" data-inline-newsletter=\"\">\n<div class=\"cs-inline-newsletter__inner\">\n<div class=\"cs-inline-newsletter__content\"> <span class=\"cs-inline-newsletter__eyebrow\">CryptoSlate Daily Brief<\/span><\/p>\n<h3 class=\"cs-inline-newsletter__title\">Daily signals, zero noise.<\/h3>\n<p class=\"cs-inline-newsletter__copy\">Market-moving headlines and context delivered every morning in one tight read.<\/p>\n<p> <span><i class=\"fa-regular fa-bolt\" aria-hidden=\"true\"\/> 5-minute digest<\/span> <span><i class=\"fa-regular fa-star\" aria-hidden=\"true\"\/> 100k+ readers<\/span><\/p>\n<\/div>\n<div class=\"cs-inline-newsletter__form-shell\">\n<p class=\"cs-inline-newsletter__privacy\">Free. No spam. Unsubscribe any time.<\/p>\n<p> <i class=\"fa-regular fa-circle-xmark\" aria-hidden=\"true\"\/> <span>Whoops, looks like there was a problem. Please try again.<\/span><\/p>\n<p> <i class=\"fa-regular fa-circle-check\" aria-hidden=\"true\"\/> <span>You\u2019re subscribed. Welcome aboard.<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<p>The slow-moving collateralized lending that produced 2022&#8217;s cascading failures has shrunk considerably, while the faster-moving derivatives exposure that drives sudden liquidation events has been rebuilding.<\/p>\n<h2>How Bitcoin&#8217;s next move reads<\/h2>\n<p>If Bitcoin weakens while Galaxy&#8217;s lending figures keep declining at their current gradual pace, that points toward a macro-driven selloff. High real yields and heavy Treasury and corporate bond supply would be doing the damage on their own, with crypto&#8217;s unfinished deleveraging playing a minor role at most.<\/p>\n<p>If collateralized lending suddenly accelerates its decline alongside a Bitcoin selloff, or futures open interest collapses abruptly where it would normally just ease, that would look more like the credit-driven cascades of the last cycle.<\/p>\n<p>The bull case has the 30-year retreating below 5.1% or real yields easing off their current highs, giving Bitcoin room to reclaim the $67,000 to $72,000 range. Futures open interest stays roughly stable, and collateralized lending does not re-expand aggressively.<\/p>\n<div class=\"cs-article-embed\">\n<div class=\"cs-article-embed__media\"> <img loading=\"lazy\" width=\"1024\" height=\"576\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/07\/bitcoin-defends-62500-altcoins-market-selloff-1024x576.jpg\" alt=\"Bitcoin must defend $62,500 as altcoins lose $8.8 billion in a week\" loading=\"lazy\" decoding=\"async\"\/><img loading=\"lazy\" class=\"lazyload\" width=\"1024\" height=\"576\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/07\/bitcoin-defends-62500-altcoins-market-selloff-1024x576.jpg\" alt=\"Bitcoin must defend $62,500 as altcoins lose $8.8 billion in a week\" loading=\"lazy\" decoding=\"async\"\/><\/div>\n<div class=\"cs-article-embed__body\"> <span class=\"cs-article-embed__related-reading\">Related Reading<\/span><\/p>\n<h3 class=\"cs-article-embed__title\">Bitcoin must defend $62,500 as altcoins lose $8.8 billion in a week<\/h3>\n<p>Bitcoin\u2019s defense of $62,500 will set the tone for a fragile altcoin market, with ETH, HYPE and leveraged traders exposed to another unwind.<\/p>\n<p> <span class=\"cs-article-embed__meta-item\">Jul 18, 2026<\/span> <span class=\"cs-article-embed__meta-divider\">\u00b7<\/span> <span class=\"cs-article-embed__meta-item\">Gino Matos<\/span><\/p>\n<\/div><\/div>\n<p>That combination supports the idea that the $22.5 billion credit unwind already completed lets Bitcoin absorb a long-rate shock this severe without repeating 2022.<\/p>\n<p>The bear case has the 30-year pushing toward 5.4% to 5.7% while real yields hold near their multi-decade highs, dragging Bitcoin below $60,000 and toward the $52,000 to $58,000 range.<\/p>\n<table>\n<thead>\n<tr>\n<th>Scenario<\/th>\n<th>Treasury signal<\/th>\n<th>Bitcoin signal<\/th>\n<th>Leverage signal<\/th>\n<th>Interpretation<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Bull case<\/td>\n<td>30-year falls below 5.1% or real yields ease<\/td>\n<td>BTC reclaims $67K\u2013$72K<\/td>\n<td>Futures OI stable; lending does not re-expand aggressively<\/td>\n<td>Credit unwind helped BTC absorb the rate shock<\/td>\n<\/tr>\n<tr>\n<td>Macro-led bear case<\/td>\n<td>30-year pushes toward 5.4%\u20135.7%<\/td>\n<td>BTC loses $60K, tests $52K\u2013$58K<\/td>\n<td>Futures OI drops; liquidations rise; lending declines gradually<\/td>\n<td>Bond market is driving stress, not lender contagion<\/td>\n<\/tr>\n<tr>\n<td>Credit-cascade case<\/td>\n<td>Long yields stay high<\/td>\n<td>BTC sells off sharply<\/td>\n<td>Collateralized lending decline accelerates abruptly<\/td>\n<td>Looks more like 2022-style deleveraging<\/td>\n<\/tr>\n<tr>\n<td>Neutral\/chop case<\/td>\n<td>30-year holds near 5.3%<\/td>\n<td>BTC stays near $60K\u2013$66K<\/td>\n<td>OI eases modestly; lending keeps shrinking slowly<\/td>\n<td>Market absorbs the shock without a clear break<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Futures open interest contracts sharply and liquidations climb, while Galaxy&#8217;s lending figures keep falling at their current gradual pace without accelerating. That combination would mark the selloff as macro-led and derivatives-amplified, distinct from the lender failures that turned 2022&#8217;s decline into a cascade.<\/p>\n<p>Bitcoin is walking into a Treasury-rate environment it has never faced before, carrying a credit structure that looks nothing like the one that broke in 2022. Whatever happens next should finally show whether the bond market or crypto&#8217;s own leverage has been driving Bitcoin&#8217;s stress all along.<\/p>\n<\/div>\n<p>Analysis,Featured,Lending,Macro#Bitcoin #faces #highest #Treasury #hurdle #22.5B #crypto #credit #unwind1787052733<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The US 30-year Treasury yield crossed 5.3% on Aug. 17 for the first time since June 2007, the same day Galaxy published a report showing crypto-collateralized lending down more than $22 billion from its peak. Bitcoin hit an intraday high of $64,610.01 that day. What makes the Treasury move unusual is its direction against the<\/p>\n","protected":false},"author":1,"featured_media":12031,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[6327,91,2810,62,147,3344,1972,585,2712],"class_list":["post-12030","post","type-post","status-publish","format-standard","has-post-thumbnail","category-ethereum","tag-22-5b","tag-bitcoin","tag-credit","tag-crypto","tag-faces","tag-highest","tag-hurdle","tag-treasury","tag-unwind"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.6 (Yoast SEO v26.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Bitcoin faces its highest Treasury hurdle since 2007 with $22.5B less crypto credit to unwind - Crypto News: Latest Cryptocurrency News and Analysis<\/title>\n<meta name=\"description\" content=\"Bitcoin faces the highest 30-year Treasury yield since 2007 after crypto-collateralized lending fell by $22.5 billion from its 2025 peak.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptonews.uk.com\/?p=12030\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bitcoin faces its highest Treasury hurdle since 2007 with $22.5B less crypto credit to unwind\" \/>\n<meta property=\"og:description\" content=\"Bitcoin faces the highest 30-year Treasury yield since 2007 after crypto-collateralized lending fell by $22.5 billion from its 2025 peak.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptonews.uk.com\/?p=12030\" \/>\n<meta property=\"og:site_name\" content=\"Crypto News: Latest Cryptocurrency News and Analysis\" \/>\n<meta property=\"article:published_time\" content=\"2026-08-18T11:32:13+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptonews.uk.com\/wp-content\/uploads\/2026\/08\/bitcoin-rate-burden.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"720\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"\u884c\u653f\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"\u884c\u653f\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/cryptonews.uk.com\/?p=12030\",\"url\":\"https:\/\/cryptonews.uk.com\/?p=12030\",\"name\":\"Bitcoin faces its highest Treasury hurdle since 2007 with $22.5B less crypto credit to unwind - Crypto News: Latest Cryptocurrency News and Analysis\",\"isPartOf\":{\"@id\":\"https:\/\/cryptonews.uk.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/cryptonews.uk.com\/?p=12030#primaryimage\"},\"image\":{\"@id\":\"https:\/\/cryptonews.uk.com\/?p=12030#primaryimage\"},\"thumbnailUrl\":\"https:\/\/cryptonews.uk.com\/wp-content\/uploads\/2026\/08\/bitcoin-rate-burden.jpg\",\"datePublished\":\"2026-08-18T11:32:13+00:00\",\"author\":{\"@id\":\"https:\/\/cryptonews.uk.com\/#\/schema\/person\/822778c5844e0d16d43dce6630f4f1bf\"},\"description\":\"Bitcoin faces the highest 30-year Treasury yield since 2007 after crypto-collateralized lending fell by $22.5 billion from its 2025 peak.\",\"breadcrumb\":{\"@id\":\"https:\/\/cryptonews.uk.com\/?p=12030#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/cryptonews.uk.com\/?p=12030\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/cryptonews.uk.com\/?p=12030#primaryimage\",\"url\":\"https:\/\/cryptonews.uk.com\/wp-content\/uploads\/2026\/08\/bitcoin-rate-burden.jpg\",\"contentUrl\":\"https:\/\/cryptonews.uk.com\/wp-content\/uploads\/2026\/08\/bitcoin-rate-burden.jpg\",\"width\":1280,\"height\":720},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/cryptonews.uk.com\/?p=12030#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/cryptonews.uk.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Bitcoin faces its highest Treasury hurdle since 2007 with $22.5B less crypto credit to unwind\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/cryptonews.uk.com\/#website\",\"url\":\"https:\/\/cryptonews.uk.com\/\",\"name\":\"Crypto News: Latest Cryptocurrency News and Analysis\",\"description\":\"Latest Crypto &amp; 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