Key takeaways:
-
Bitcoin price stabilized after US regional banks posted stronger-than-expected earnings, easing credit fears.
-
One analyst predicted Bitcoin’s bull run could end in 10 days.
Bitcoin (BTC) 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. On Friday, US banking stocks showed signs of resilience, and global market sentiment steadied pre-market.
Bitcoin one-day chart. Source: Cointelegraph/TradingViewHowever, 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.
The latest shift in sentiment came after several key regional lenders, including Truist Financial, Regions Financial and Fifth Third Bancorp, reported lower provisions for credit losses than 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, including Barclays and Deutsche Bank, pared earlier losses, while Asian lenders like Mizuho Financial and Sumitomo Mitsui also steadied after heavy selling.
RBC Capital Markets said that regional banks “remain well reserved for potential losses” and have bolstered capital since 2023, suggesting the recent sell-off may have been overdone.
Related: How low will Bitcoin go? Regional US ‘bank stress’ pushes BTC toward $100K
Trump’s tariff comments boost optimism
Adding to the improved tone, US President Donald Trump confirmed that steep tariffs on Chinese goods “will not persist” and announced plans for a summit with Chinese President Xi Jinping in two weeks. The statement, following Beijing’s willingness to collaborate on trade disputes, sparked a rebound in global markets, with US stock futures up 1.2%.
Market observers said the tone of risk sentiment had turned notably calmer. Cointelegraph reported earlier this week that the latest crypto and equity pullbacks “do not have long-term fundamental implications,” suggesting that the market is moving through short-term volatility rather than systemic distress.
However, some analysts caution that Bitcoin’s current bull cycle may be nearing its end. Analyst CryptoBird said in an X post that the Bitcoin “bull run ends in 10 days,” basing the forecast on historical cycle patterns.
Related: Bitcoin ‘bull run is over’, traders say, with 50% BTC price crash warning
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Source: https://cointelegraph.com/news/bitcoin-holds-105k-as-us-bank-stocks-recover-trump-truce-lifts-sentiment?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
