US Private Credit Stress Hits 2017 High: Why It Matters for Bitcoin?

US private credit is showing its highest stress since 2017, with non-accrual loans rising to a median 2.8% of cost across the 20 largest listed US BDCs in Q2 2026 and some funds seeing redemption requests as high as 40% of NAV. Fitch also said trailing 12-month private credit defaults hit 6.0%. The article argues the immediate BTC risk is liquidity-driven: if credit stress worsens, investors may sell liquid assets like Bitcoin to raise cash. However, if stress becomes severe enough to slow the US economy, it could push the Federal Reserve toward rate cuts or other easing, which would likely support BTC. Net effect: near-term bearish pressure on Bitcoin, but potentially bullish longer-term if the stress triggers easier monetary policy.