Bitcoin stabilized near $67,000 on Thursday after briefly dipping below $66,000 in early U.S. trading, as investors sought protection against further losses. The cryptocurrency was last trading around $68,382, up roughly 1% over the past 24 hours.
Altcoins lagged behind, with ether (ETH), XRP, BNB, DOGE ($0.09970), and solana (SOL) flat to slightly lower, reflecting continued caution in the broader crypto market.
Crypto-related stocks saw modest gains, led by bitcoin miners CleanSpark (CLSK) and MARA (MARA), both up about 6%, while U.S. equities lagged, with the S&P 500 down 0.3% and the Nasdaq 100 falling 0.6%.
On the regulatory front, White House-hosted discussions between crypto representatives and bankers showed incremental progress on a digital asset market structure bill, though no formal agreement has been reached.
The recent downturn continues to reveal vulnerabilities. Chicago-based lender Blockfills is exploring a sale after a $75 million lending loss and a temporary suspension of client deposits and withdrawals. Investors remain cautious, mindful of past blowups like Celsius and FTX in 2022. So far, the fallout has been contained, mitigating worst-case fears while avoiding the kind of market-wide sell-off that typically signals a bottom.
Broader financial risks persist. Private-equity firm Blue Owl (OWL) restricted redemptions in its $1.7 billion retail-focused credit fund, sending shares down 6%. Other major credit managers, including Apollo Global (APO), Ares Capital (ARES), and Blackstone (BX), fell more than 5%. Geopolitical tensions also weigh on markets, with potential U.S. military action against Iran and crude oil rising 2.8% to over $66 per barrel, the highest since August.
Caution is mirrored in crypto derivatives. Jake Ostrovskis, head of OTC at Wintermute, noted traders are buying downside protection while limiting upside participation—paying for insurance against another drop while capping potential gains.
U.S. bitcoin ETF investors now hold an average cost basis near $84,000, leaving them with a 20% paper loss and exposed to potential capitulation selling if prices fall further. Yet total ETF holdings remain near peak levels, suggesting institutions are trimming rather than exiting.
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