Bitcoin steadies above key technical support as policy talks, credit market strain, and geopolitical tensions weigh on investor risk appetite.
Bitcoin stabilized around $67,000 on Thursday after briefly dipping below $66,000, avoiding a deeper breakdown. Altcoins underperformed, with major tokens flat or slightly lower. Policy discussions at the White House on the crypto market structure bill showed incremental progress but no agreement. Credit market stress intensified after Blue Owl permanently halted redemptions in its $1.7 billion private credit fund, leading to sharp declines in private credit manager stocks. Geopolitical risks rose with potential U.S. military action against Iran. Crypto derivatives traders sought downside protection, reflecting cautious sentiment. Blockfills explored a sale after a $75 million lending loss during the recent downturn. U.S. bitcoin ETF investors face average unrealized losses of about 20%, though holdings remain near peak levels. Eric Trump reiterated a prediction that bitcoin will reach $1 million, citing long-term performance at a World Liberty Financial forum.