Blue Owl Capital has sold approximately $1.4 billion in loan assets to address redemption requests from investors in its retail-focused private credit fund. The sale, executed at 99.7% of par value, will return about 30% of the fund's net asset value to qualified investors. This move has led to a nearly 15% drop in Blue Owl's stock (OWL) this week, with a year-over-year decline exceeding 50%. Shares of other private equity firms, including Blackstone, Apollo Global, and Ares Management, have also seen significant declines. Market analysts have drawn parallels between this situation and the pre-2007 financial crisis, cautioning that the rapid expansion of the private credit market, especially in AI-related investments, could pose systemic risks. They warn that if central banks are pressured to cut interest rates and inject liquidity, it might replicate the post-pandemic 2020 scenario, potentially boosting Bitcoin and the broader crypto market.