Bitcoin stabilized near $67,000 on Thursday, recovering after briefly dipping below $66,000 in early U.S. trading, as traders sought protection against further downside. The largest cryptocurrency was last trading around $68,382, up roughly 1% over the past 24 hours.
Altcoins, however, showed little momentum. The CoinDesk 20 Index lagged, with ether (ETH), XRP, BNB, DOGE ($0.09970), and solana (SOL) flat to slightly lower, signaling continued caution amid uncertain crypto markets.
Crypto-related stocks saw modest gains, led by bitcoin miners CleanSpark (CLSK) and MARA (MARA), both up about 6%. By contrast, the broader U.S. equities market slipped, with the S&P 500 down 0.3% and the tech-heavy Nasdaq 100 falling 0.6%.
On the regulatory front, White House-hosted discussions between crypto industry representatives and bankers showed incremental progress on a digital asset market structure bill, though no formal agreement has yet been reached.
Meanwhile, the fallout from the recent crypto downturn continues to surface. Chicago-based crypto lender Blockfills is exploring a sale after reporting a $75 million lending loss during the market slump, following a temporary suspension of client deposits and withdrawals. Investors have been bracing for potential blowups reminiscent of Celsius and FTX in 2022, but so far, the impact has remained contained. This balance has tempered worst-case fears while preventing a total market washout that historically signals the start of a recovery.
Outside crypto, broader risks are also weighing on investors. Private-equity firm Blue Owl (OWL) permanently restricted redemptions in its $1.7 billion retail-focused credit fund, sending its shares down 6%. Other major private credit managers, including Apollo Global (APO), Ares Capital (ARES), and Blackstone (BX), saw declines exceeding 5%. Geopolitical tensions remain elevated, with potential U.S. military action against Iran contributing to market uncertainty. Crude oil surged 2.8% to over $66 per barrel, its highest level since August.
Traders are reflecting caution in the derivatives market. Jake Ostrovskis, head of OTC at Wintermute, noted that many investors are buying downside protection while limiting upside exposure—effectively paying for insurance against another price drop while capping potential gains in a rally.
The average U.S. bitcoin ETF cost basis now sits near $84,000, leaving investors with roughly a 20% paper loss and potentially exposed to capitulation selling if prices slide further. Nevertheless, total ETF holdings remain close to peak levels in bitcoin terms, suggesting that institutions are trimming positions rather than exiting the market entirely.
