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Bitcoin drops below $105K, but US banking pressure eases

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TD9 Setup On Bitcoin Price Chart Suggests It Could Take
TD9 Setup On Bitcoin Price Chart Suggests It Could Take

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.

BitcoinBTCIn the last two days, the price of ) has fallen more than 5 percent to below $105,000. This is a continuation of a downward trend that began on Thursday as renewed US bank stress rattled markets. It also sparked concerns about financial stability in general. 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.

After several major regional lenders such as Truist Financial, Regions Financial, and Fifth Third Bancorp announced lower provisions than expected for credit loss, the market’s sentiment began to shift. 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 heavy trading. Asian lenders, like Sumitomo Mitsui and Mizuho Financial, also stabilized following heavy selling.

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 has confirmed the steep tariffs imposed on Chinese imports. “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 watchers said risk sentiment has become more tempered. 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.

Some analysts however have a different view. caution Bitcoin’s bullish cycle could be coming to an 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

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.