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Bitcoin dips below $105K but US banking stress eases

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Analyst Sees a Bitcoin Market Shift — Here’s What’s Happening
Analyst Sees a Bitcoin Market Shift — Here’s What’s Happening

Takeaways from the conference:

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

  • Analysts predicted that Bitcoin bull market could be over in 10 days.

BitcoinBTC() declined more than 5 percent to close below $105,000 Friday. This extended a 2-day slide as renewed US bank stress rattled markets for risk and re-ignited concerns about the stability of the broader economy. US bank stocks showed resilience on Friday and the global pre-market market sentiment was stable. 

Bitcoin chart for the day. 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 banks, such as Barclays, Deutsche Bank and Mizuho Financial, have pared their losses after years of heavy trading. Asian lenders, like Sumitomo Mitsui and Mizuho Financial, also stabilized following heavy sales.

RBC Capital Markets stated that regional banks “remain well reserved for potential losses” The recent stock market selloffs may have overdone it.

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 the positive tone. “will not persist” Xi Jinping, the Chinese president will meet with him in two weeks. Following Beijing’s willingness for collaboration on trade disputes the announcement sparked an upswing in global markets with US stocks futures rising 1.2%.

Market analysts said that the risk-taking mood had notably cooled. Cointelegraph reported This week, we reported on the latest Crypto and Equity Pullbacks “do not have long-term fundamental implications,” This suggests that short-term market volatility is more important than systemic distress.

Many analysts disagree. caution Bitcoin’s bull cycle is nearing an end. CryptoBird stated in a X message that Bitcoin is nearing the end of its current bull cycle. “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

This article contains no investment recommendations or advice. Each investment or trading decision involves some risk. Readers should do their own research before making any decisions.