Bitcoin pushed back above $64,000 in early U.S. Trading Tuesday, rebounding alongside a broader recovery in risk assets after a period of volatility. The cryptocurrency was trading at $64,200, still down 0.75% over the past 24 hours, but significantly above the morning’s low of $62,500.

The gains followed a shift in sentiment regarding artificial intelligence, with software shares – as represented by the iShares Software Sector ETF (IGV) – rising 1.7% after recent declines. This reversal came as companies like Intuit and DocuSign announced partnerships with AI firm Anthropic, suggesting established tech firms may be able to integrate AI rather than be disrupted by it.

The crypto market’s correlation with technology stocks remained strong, while traditional safe havens experienced losses. Gold fell 1.5% and crude oil slipped 0.5% as geopolitical tensions appeared to ease following reports that Iran’s deputy foreign minister, Majid Takht-Ravanchi, stated the country “is ready to take any necessary step to reach a deal with the U.S.,” according to reports.

The Nasdaq 100 traded 1.1% higher and the S&P 500 rose 0.8%. High-performance computing firms and bitcoin miners, increasingly linked to AI data center infrastructure, led the gains. Bitdeer (BTDR), Cipher Mining (CIFR), Hut 8 (HUT), and TeraWulf (WULF) rallied between 6% and 10%.

However, not all crypto-related stocks participated in the rally. Coinbase (COIN), MARA Holdings (MARA), and Strategy (MSTR) experienced modest losses of 0.5% to 1%.

The rebound in Bitcoin follows a period of outflows from crypto ETFs. On February 18, Bitcoin spot ETFs shed $133.3 million, led by BlackRock’s IBIT, which saw $84.2 million in redemptions, and Fidelity’s FBTC, which lost $49 million. Ether spot ETFs also experienced outflows of $41.8 million, with BlackRock’s ETHA losing nearly $30 million. XRP ETFs posted $2.2 million in outflows. In contrast, Solana spot ETFs bucked the trend with $2.4 million in net inflows, suggesting investors were rotating within the crypto market rather than exiting it entirely.

As of February 19, Solana ETFs had seen nearly $880 million in cumulative inflows, led by Bitwise’s BSOL with $1.5 million in novel capital. This inflow occurred as U.S.-listed crypto ETFs generally experienced redemptions, signaling selective institutional interest. Total net assets across bitcoin funds stood at $83.6 billion, roughly 6.3% of bitcoin’s market cap, while ether funds held $11.1 billion, about 4.8% of ETH’s market cap.

Solana’s price performance has outpaced both Bitcoin and Ether in the past year and a half, though all three cryptocurrencies experienced a selloff in late February and early March, with Solana leading the decline. Solana’s volatility is significantly higher than that of Bitcoin and Ether, with a realized volatility of around 80% over the past three months, nearly twice that of Bitcoin.

The one-year rolling correlation of Solana with both Ether and Bitcoin is high, around +0.7, though slightly less correlated to Bitcoin than Ether is to Bitcoin. All three cryptocurrencies have shown a positive correlation with the Nasdaq-100, though the correlation is relatively modest at around +0.4.

Private equity firm Blue Owl Capital (OWL) saw its stock tumble nearly 15% this week after announcing it would liquidate $1.4 billion in assets to meet investor redemptions, sparking concerns among analysts of a potential echo of the 2008 financial crisis. The asset manager also faces questions regarding permanently halting redemptions in one of its funds.

The sell-off triggered comparisons to the collapse of two Bear Stearns hedge funds in 2007, widely considered a precursor to the global financial crisis. Mohamed El-Erian, former chief executive of Pimco, described the situation as a potential “canary-in-the-coalmine” moment, referencing the early warning signs of instability that preceded the 2008 meltdown.

While Blue Owl denies halting all redemptions, the company confirmed the $1.4 billion asset sale, impacting investors in a retail-focused private credit fund. The move comes as other major private equity firms, including Blackstone (BX), Apollo Global (APO), and Ares Management (ARES), have also experienced significant declines in their stock prices this week.

The events of August 2007 saw the collapse of two Bear Stearns hedge funds due to losses on subprime mortgage-backed securities, followed by BNP Paribas freezing withdrawals from three funds due to difficulties in valuing U.S. Mortgage assets. These events led to a tightening of credit markets and a subsequent liquidity crisis.

The potential implications for Bitcoin, currently trading around $68,379.61, are complex. While tighter credit conditions could initially hurt risk assets, including cryptocurrencies, a significant government response – similar to the bank bailouts and quantitative easing implemented after 2008 – could prove bullish for the digital asset. Bitcoin was created in the wake of the 2008 crisis, with its genesis block containing the headline “Chancellor on brink of second bailout for banks,” reflecting the disillusionment with traditional financial institutions that fueled its creation.

The original intent behind Bitcoin was to establish a peer-to-peer electronic cash system independent of central control, offering an alternative to a fragile banking system. However, the cryptocurrency landscape has evolved significantly since 2009, with large institutional investors now holding substantial amounts of Bitcoin and exchange-traded funds offering access to the asset.

Whether Blue Owl’s situation will trigger a similar resurgence in Bitcoin’s original ethos and drive another bull run remains to be seen. The firm, formed in 2021 through the merger of Owl Rock Capital and Dyal Capital Partners, specializes in private credit, direct lending, and general partner capital solutions.