The Bitcoin Credit Unwind and Its Role In The System

Capital Flows · Capital Flows · June 26, 2026 at 13:04 · ⏱ 1 min read  | Read on Substack ↗
Summary
The article argues that Bitcoin's price movements are driven by credit cycles, not macro liquidity, and that a falling Bitcoin is not a reliable indicator of broader market stress. It also previews a livestream series on rare earth supply chains, highlighting their critical role in defense and AI hardware.
  • Bitcoin led on the upside in 2025 but has underperformed the lowest quality names in the Russell on the downside in 2026.
  • Banks are issuing credit into all-time highs while many believe liquidity is contracting.
  • Rare earths are described as the choke point underneath everything from defense systems to AI hardware.
  • A livestream on rare earths is scheduled for Monday, with the first half free and the second half for paid subscribers.
Read time 1 min
Length 1,955 chars
Category finance
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