Crypto sell-off risk rises amid surge in private credit fund redemptions

A large-scale redemption from private credit funds could spill over into the cryptocurrency market and create short-term selling pressure, Crypto Briefing reported. The outlet highlighted Blackstone's flagship private credit fund, BCRED, which has approximately $48 billion in assets under management. In the first quarter of 2026, the fund saw redemption requests reach 7.9% of its equity, amounting to about $3.7 billion. In March, BCRED recorded its first monthly loss (-0.4%) since September 2022. Blackstone responded with a $400 million support package, consisting of $150 million from management and $250 million from the company, and raised its quarterly redemption limit from 5% to 7%. Crypto Briefing noted that when semi-liquid funds face a rush of redemptions, managers tend to sell their most liquid assets first. In a mixed portfolio that includes cryptocurrencies, major assets like Bitcoin are likely to be among the first sold, creating downward pressure regardless of any underlying credit issues.