Bitcoin steadied near $67,000 on Thursday after briefly falling below $66,000 in early U.S. trading, as investors sought protection against further losses. The cryptocurrency was last trading around $68,382, up about 1% over the past 24 hours.
Altcoins remained muted, with ether (ETH), XRP, BNB, DOGE ($0.09970), and solana (SOL) flat to slightly lower, reflecting ongoing caution in the crypto market.
Crypto-related stocks posted modest gains, led by bitcoin miners CleanSpark (CLSK) and MARA (MARA), both up roughly 6%, while broader U.S. equities lagged—S&P 500 down 0.3%, Nasdaq 100 down 0.6%.
On the policy front, White House-hosted talks between crypto industry representatives and bankers showed incremental progress on a digital asset market structure bill, though no agreement has yet emerged.
The recent market downturn continues to surface risks. 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 wary of repeat failures like Celsius and FTX in 2022, though fallout so far appears contained.
Broader financial pressures persist. Private-equity firm Blue Owl (OWL) permanently restricted redemptions in its $1.7 billion retail-focused credit fund, sending shares down 6%, while Apollo Global (APO), Ares Capital (ARES), and Blackstone (BX) fell more than 5%. Geopolitical tensions add uncertainty, with the prospect of U.S. military action against Iran, while crude oil rose 2.8% to over $66 per barrel.
Caution is also reflected in crypto derivatives. Jake Ostrovskis, head of OTC at Wintermute, noted that traders are buying downside protection while limiting upside participation—essentially 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. Total ETF holdings remain near peak levels, suggesting institutions are trimming exposure rather than exiting entirely.
