The cryptocurrency party hit a bit of a speed bump Thursday as leading digital assets came under pressure. Investors decided to trim their risk appetite after the market's recent advances, leading to a widespread pullback across major tokens.

Here's how the major cryptocurrencies looked at 8:25 p.m. ET:

Crypto Markets Run Out of Gas

Bitcoin had a momentarily scary morning, dipping below the psychologically important $90,000 level in early trading before recovering to hover around $91,000. Trading volume barely budged over the last 24 hours, suggesting investors are taking a breather rather than panicking.

Ethereum wobbled in the $3,100 zone, while XRP and Dogecoin also failed to mount any meaningful breakouts. The mood was decidedly cautious.

The pain was real for leveraged traders. Over $400 million was liquidated from the cryptocurrency market in the last 24 hours, according to Coinglass, with nearly $320 million in bullish bets getting wiped out. That's what happens when you bet big and the market goes the other way.

But here's the interesting part: over $450 million in Bitcoin shorts on Binance are at risk of liquidation if the apex cryptocurrency manages to reclaim $93,000. So there's potential fuel for a move higher if Bitcoin can find its footing.

Meanwhile, Bitcoin's open interest fell 0.55% in the last 24 hours, though it's still up a healthy 8% since the year began. That suggests long-term positioning remains constructive even as short-term traders got shaken out.

Top Gainers (24 Hours)

The global cryptocurrency market capitalization stood at $3.13 trillion, following a drop of 1.87% in the last 24 hours. Not catastrophic, but definitely a step back from recent momentum.

Stocks Bounce Back, Oil Climbs Higher

While crypto took a breather, traditional markets had a better day. Stocks recovered on Thursday with the Dow Jones Industrial Average rallying 270.03 points, or 0.55%, to end at 49,266.11. The S&P 500 gained a modest 0.01% to end at 6,921.46. The tech-heavy Nasdaq Composite, meanwhile, retreated 0.44% to settle at 19,627.24.

Defense stocks were the day's big winners. Shares of Lockheed Martin Corp. (LMT) and Kratos Defense & Security Solutions, Inc. (KTOS) closed up 4.34% and 13.78%, respectively, after President Donald Trump said he wants to increase the 2027 military budget from $1 trillion to $1.5 trillion. That's a 50% increase, and defense contractors are understandably excited about the potential payday.

Oil prices also rebounded, with U.S. West Texas Intermediate rising 0.87% to $58.26 a barrel. Energy markets have been volatile lately, but the bounce suggests some stability returning.

What's Next for Bitcoin?

The big question on everyone's mind: is Bitcoin's recent weakness just a healthy pullback, or something more concerning?

Blockchain analytics firm CryptoQuant noted that the Market Value to Realized Value Ratio, or MVRV Ratio, is trending lower after failing to sustain levels near "historical overvaluation zones." This ratio compares Bitcoin's market cap to its realized cap, essentially measuring whether the asset is overvalued or undervalued relative to what holders paid for it.

"Unless the MVRV Ratio can stabilize and reclaim higher ground, the broader signal continues to favor cooling momentum over renewed strength," CryptoQuant added. Translation: things might get choppier before they get better.

Ali Martinez, a widely followed cryptocurrency analyst and trader, laid out a critical level to watch. He said that Bitcoin must hold above $87,200 to avoid a drop toward $69,230. That's a meaningful downside risk if support breaks, potentially erasing much of Bitcoin's recent gains.

Martinez also weighed in on Ethereum's prospects, projecting a target of $3,730 from an ascending triangle pattern. That would represent about a 20% gain from current levels, offering some hope for bulls in the second-largest cryptocurrency.

For now, the crypto market seems to be in wait-and-see mode, with traders watching key technical levels and trying to gauge whether this pullback is just a normal consolidation or the start of something more significant.