As U.S. bankruptcies surge past pandemic levels, is crypto becoming the unexpected outlet for liquidity, or just another risk tied to credit stress?
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Bankruptcies hit highest level since 2020
In July, 71 large companies in the U.S. filed for bankruptcy, the highest monthly total since July 2020, when pandemic shutdowns forced dozens of firms into default.
Year-to-date, 446 large bankruptcy filings have been recorded, already surpassing pandemic levels and marking the busiest start to a year since 2010.
The hardest hit sectors are industrials and consumer discretionary. Industrials account for 70 filings so far in 2025, followed by 61 in consumer-related businesses. Healthcare has seen 32, while energy companies, supported by high commodity prices, have reported only 4.
Several well-known consumer brands including Forever 21, Rite Aid, Joann’s, and Claire’s have returned to court after earlier restructurings failed to stabilize their operations.
The numbers are tied directly to refinancing pressures. In early 2024, corporate interest costs made up just 9.1% of net income, the lowest level since the 1950s. As debt matured and rolled into higher-rate environments, that figure climbed rapidly.
The scale of these defaults is being closely tracked by crypto markets because it speaks directl
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Author: Ankish Jain
