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Bitcoin dips below $105K but US banking stress eases

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Japan’s Metaplanet Acquires 2,205 More Bitcoin, Total Holdings Reach 15,555
Japan’s Metaplanet Acquires 2,205 More Bitcoin, Total Holdings Reach 15,555

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.

BitcoinBTCThis was the second day of a decline that saw shares fall more than 5 percent to below $105,000. The drop came as new US bank stress rattled markets, and renewed concerns about 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 banks like Barclays Bank and Deutsche Bank pared losses earlier, and Asian lenders such as Mizuho Financial or Sumitomo Mitsui have also stabilised after heavy trading.

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 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 triggered a recovery in global stock markets with US 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.

There are some analysts who disagree. caution Bitcoin’s current bull-cycle may be approaching its end. CryptoBird stated in an X-post 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

The article is not intended to provide investment advice. Each investment or trading decision involves some risk. Readers should do their own research before making any decisions.