It seems that there is a disturbance occurring in BlackRock's private credit strategy. According to recent reports, the company's private credit funds have suffered significant setbacks, which are beginning to ripple through the entire cryptocurrency market.

What is noteworthy is that this has exposed the fragility of the capital management model that relies on privacy. When private credit products aimed at institutional investors incur unexpected losses, the credibility of the related asset classes is being shaken.

The impact on the cryptocurrency market is also severe. Especially in the DeFi market, liquidity related to private credit is rapidly shrinking, making it increasingly difficult for projects that relied on privacy to raise funds. The prices of major tokens like Bitcoin and Ethereum are also under downward pressure.

Personally, I feel this event suggests that the separation between the private and public markets is more fragile than previously imagined. Large-scale losses by major institutions can significantly influence overall market sentiment. In the crypto industry, as the shift from private investors to institutional investors accelerates, close attention must be paid to these chain reactions.

Going forward, how the DeFi market readjusts will be a key point. Until market turmoil settles, volatility is likely to remain high for a while.