Bitcoin is currently trading at $64,000, representing a 13% decline over the past week and leading a broad cryptocurrency selloff. According to latest market data, U.S. stocks closed mixed with the DJIA jumping 1.7% boosted by healthcare sector gains, while the S&P 500 added 0.4%. The Nasdaq ended lower by just 0.1% as AI-related favorites suffered significant losses. Given that tens of millions of US residents own crypto, many fund redemption requests came from the same investors suffering simultaneous drawdowns across both traditional and digital assets.
The $79 billion Blackstone Private Credit Fund (BCRED) announced on Thursday that withdrawal requests hit 10% of its outstanding shares but will honor only 5%. This marks the first time BCRED has ever capped redemptions, with the cap working out to about half of what investors wanted according to a regulatory filing. Last quarter, the fund had hit a record 7.9% withdrawal requests but Blackstone tapped employee accounts to fund the difference. This quarter, with requests even higher, employee checkbooks stayed closed, leaving many investors with only 50 cents on the dollar of their redemption requests.
Ripple is currently trading at $1.16 USDT, showing extreme bearish conditions across all technical indicators. The Bollinger Bands on the hourly chart show the price exactly on the lower band, with the middle band at 1.20 as the first recovery target. The Fear & Greed Index stands at 12 — Extreme Fear — indicating capitulatory sentiment among traders. The 14-period RSI on the daily has plunged to 22.92 — extreme oversold territory — though this level typically remains in oversold conditions for weeks during strong directional trends. The price is compressed in a 1-cent range between pivot and support, with immediate resistance just above and support only 3 cents below.
Reza Bundy, CEO of investment advisory firm Atlas Capital and business partner of economist Nouriel Roubini, expects bitcoin to fall as much as 70% over the next six months before eventually climbing as high as $500,000 in the years ahead. Speaking to CoinDesk at the Proof of Talk conference in Paris, Bundy warned that $26,000 to $30,000 represents the projected drawdown range. According to reports from CoinDesk, Bundy stated that if there's a drawdown in the stock market that's even half of what happened in 2008, Bitcoin will double that debt loss.
Private credit funds are experiencing significant redemption pressure alongside crypto selloffs. Cliffwater's $31 billion Corporate Lending Fund got hit with requests for 17% of its shares this week and is returning about one-third of those requests. The prior quarter, Cliffwater investors asked for a 14% redemption and received roughly half. Year to date, common stocks of private credit giants Apollo, Ares, Blackstone, Blue Owl, and KKR are all lower despite an 11% benchmark rally in the S&P 500 over the same time period. As Protos reports, crypto players who began piling into private credit products are now retreating, selling off tokenized proxies alongside real funds.
