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Bitcoin dips below $105K but US banking stress eases

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Key Bitcoin Price Levels To Watch as BTC Rally Stalls
Key Bitcoin Price Levels To Watch as BTC Rally Stalls

Takeaways from the conference:

  • Bitcoin price stabilized after US regional banks posted stronger-than-expected earnings, easing credit fears.

  • Bitcoin’s bullish run, according to one analyst, could come to an end within 10 days.

BitcoinBTC) fell more than 5% to trade below $105,000 on Friday, extending a two-day decline as renewed US banking stress rattled risk markets and revived concerns over broader financial stability. US bank stocks showed resilience on Friday and the global pre-market market sentiment was stable. 

Bitcoin One-Day Chart Source: Cointelegraph/TradingView

However, BTC continued to struggle near $105,000, not benefiting from improved risk appetite after regional lenders delivered stronger-than-expected earnings, easing fears of a wider credit contagion.

This latest change in attitude came as several regional lenders including Truist Financial Regions Financial Fifth Third Bancorp reported lower provision for credit losses that anticipated. The results offered relief to markets following Thursday’s rout, when the S&P Regional Banks Select Industry Index fell 6.3%, led by Zions Bancorporation and Western Alliance Bancorp after both disclosed loan losses stemming from fraud in distressed commercial mortgage funds.

The upbeat earnings helped the S&P Regional Banks Index claw back losses, with Zions Bancorp rebounding over 6%, Truist Financial rising 2%, and Western Alliance up 1.6% in early trading. 

European financials like Barclays Bank and Deutsche Bank pared losses earlier, and Asian lenders such as Mizuho Financial or Sumitomo Mitsui have also stabilised after heavy sales.

RBC Capital Markets has said regional banks are not a priority for RBC Capital Markets. “remain well reserved for potential losses” Since 2023 they have increased capital, which suggests that the recent selling may have been excessive.

Related: How low will Bitcoin go? Regional US ‘bank stress’ pushes BTC toward $100K

Trump’s tariff remarks boost optimism

Trump also confirmed steep tariffs against Chinese products, which added to a more positive tone. “will not persist” Xi Jinping will be meeting with President Obama in just two weeks. Following Beijing’s willingness for collaboration on trade disputes the announcement triggered a recovery in global stock markets with US futures rising 1.2%.

Market analysts said that the risk-taking mood had notably cooled. Cointelegraph reported The latest cryptocurrency and equity market pullbacks were reported earlier in the week. “do not have long-term fundamental implications,” This suggests that short-term market volatility is more important than systemic distress.

Some analysts, however, disagree. caution Bitcoin’s current bull-cycle may be approaching its end. CryptoBird, an analyst from X said that Bitcoin’s current bull cycle may be nearing its end. “bull run ends in 10 days,” The forecast is based on the historical cycles.

Related: Bitcoin ‘bull run is over’, traders say, with 50% BTC price crash warning

The article is not intended to provide investment advice. Risk is inherent in every investment decision and trade. The reader should always do research prior to making a final decision.