US Bankruptcies Don Skyrocket, Crypto Dey Benefit from Credit Wahala
U.S. bankruptcy don climb reach highest level since 2020, wit 446 big company dem file for 2025—12% pass pandemic level. July alone see 71 big filing, cause by rising refinancing cost as corporate interest expense rise from low 9.1% of net income early 2024 to higher. Credit tightening dey squeeze small and mid-size firm, 43% no dey make profit by end 2024.
Investors dey move their capital enter crypto market as liquidity tight. For 2020, similar wave of filing happen with Bitcoin price increase and volume spike. Today, steady flow enter spot Bitcoin ETFs and tokenized U.S. Treasuries—now over $7.3 billion value locked—show say demand dey grow. DeFi protocol like Aave don lock almost $37 billion, while stablecoin USDT and USDC dey handle trillions monthly as on-chain settlement rails.
Regulatory clarity dey increase momentum. New SEC guidance want chop ETF approval time from 240 days to 75 days. Spot ETF proposal for XRP, SOL, LTC and staking-enabled ETH dey expected by October, approval chance pass 75%. First altcoin ETF, REX-Osprey Solana + Staking, launch wit $12 million initial assets.
As bankruptcies rise and Fed dey talk rate cuts because of persistent inflation and high tariffs, crypto market fit experience mixed short-term volatility. But wider ETF access and continuing credit stress fit keep bullish momentum for both Bitcoin and altcoins.
Bullish
Di plenty bankruptcy dem dey rise for U.S. and credit tightening don always make investors dey run enter liquid, non-bank assets. For 2020, plenty default jam together with Bitcoin price rally plus ETF money wey dey flow in. Today, the way spot Bitcoin ETF volumes dey grow, together with tokenized Treasuries and stablecoin use, show say capital dey rotate back into crypto. The altcoin ETF wey dem still dey consider to approve get extra potential for better. Even though short-term wahala fit increase because of Fed policy tori and market sell-offs, the bigger trend of credit stress plus clearer regulation dey show say Bitcoin and major altcoins get strong bullish mojo to continue.