Bitcoin stabilized around $67,000 on Thursday after briefly dipping below $66,000 in early U.S. trading, as investors sought protection against further declines. The cryptocurrency was last trading near $68,382, up roughly 1% over the past 24 hours.

Altcoins remained muted, with ether (ETH), XRP, BNB, DOGE ($0.09970), and solana (SOL) flat to slightly lower, signaling continued caution in the broader crypto market.

Crypto-related stocks edged higher, led by bitcoin miners CleanSpark (CLSK) and MARA (MARA), both up about 6%, while U.S. equities lagged—S&P 500 down 0.3%, Nasdaq 100 down 0.6%.

On the regulatory front, White House-hosted talks between crypto representatives and bankers showed incremental progress on a digital asset market structure bill, though no agreement has yet been reached.

The recent crypto downturn continues to reveal vulnerabilities. Chicago-based lender Blockfills is reportedly exploring a sale after a $75 million lending loss and a temporary suspension of client deposits and withdrawals. Investors remain wary of blowups similar to Celsius and FTX in 2022, though so far the fallout has been contained, tempering worst-case fears while avoiding a broad market washout.

Broader financial risks 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 over 5%. Geopolitical tensions add to the uncertainty, with the prospect of U.S. military action against Iran, while crude oil rose 2.8% to over $66 per barrel, its highest since August.

Crypto derivatives markets reflect this caution. Jake Ostrovskis, head of OTC at Wintermute, said many traders are buying downside protection while limiting upside exposure—paying for insurance against further declines while capping potential gains.

U.S. bitcoin ETF investors hold an average cost basis near $84,000, leaving them with a 20% paper loss and potentially exposed to capitulation selling if prices fall further. Yet total ETF holdings remain near peak levels, suggesting institutions are trimming positions rather than exiting entirely.