US Treasury Yields Slam Bitcoin with Liquidity Pressure

High long-term yields in the US Treasury market have hit Bitcoin, causing liquidity pressure. The 30-year yield surged above 5.3% for the first time since 2007, while the real yield is at its highest level in 18 years.

This has raised concerns that investors may prefer to secure returns through US Treasuries over holding Bitcoin, which does not pay interest.

Crypto collateralized lending has declined by $22.53 billion from its peak, with Galaxy Digital estimating it at $56.16 billion as of the second quarter of 2026.

Borrowing on DeFi lending apps also fell more than 53% to $21.94 billion as of July 21 from $47.13 billion in September last year.