Bitcoin Takes Hit from Surging US Long-Term Yields

Bitcoin has been impacted by the surge in U.S. long-term yields, particularly the 30-year Treasury bond yield which rose above 5.3 percent for the first time since 2007. This increase in rates makes Treasuries a more attractive option for investors seeking real returns that reflect inflation.

The rise in 30-year yields also led to a decline in crypto collateralized lending, with Galaxy Digital reporting a decrease of $22.53 billion from its peak in the third quarter of 2025. As of the second quarter of 2026, crypto collateralized lending stood at $56.16 billion.

Derivatives exposure is also rising, with total futures open interest increasing to around $114 billion by the end of July, up nearly $11 billion in a month. However, this increase may be due to market participants hedging against spot holdings rather than increased leverage.