Bitcoin recorded a sharp decline on Friday, dropping below $105,000 for the first time since June. However, the largest cryptocurrency is showing early signs of recovery, now trading around $107,500—up slightly by more than 1% in the last 24 hours. Friday’s slide was among the steepest in recent months and came amid renewed unease across financial markets as concerns over U.S. regional banks resurfaced.
In brief
- •Bitcoin has dropped below $105,000 for the first time in months, reflecting growing market caution.
- •The decline coincides with renewed stress in U.S. regional banks.
- •Investor sentiment has weakened sharply and Bitcoin currently sits in the extreme fear zone.
Bitcoin Tests Key Floors Amid Market Unease
The weakness in regional bank stocks has revived fears that the earlier crisis was never fully resolved. The Kobeissi Letter, a financial commentary platform, noted that regional bank shares are once again under pressure, with the same structural problems seen in 2023—when several regional banks collapsed—appearing to persist beneath the surface.
According to Michael Driscoll, financial institutions could face increasing strain in the coming quarters as economic and geopolitical pressures build. He cautioned that banks could face increasing loan defaults and financial losses, particularly in portfolios linked to lower-income borrowers, reflecting the combined impact of inflation and global uncertainty.
Phil Rosen, co-founder of Opening Bell Daily, pointed out on Friday that “regional banks just had their worst day against the S&P 500 since March 2023, when Silicon Valley Bank collapsed.” He added, “that was the third-largest bank failure in US history.”
The renewed strain in the banking sector appears to have coincided with Bitcoin’s drop through several important price levels. The digital asset has now fallen below $108,000, and according to Julio Moreno, head of research at CryptoQuant, breaking beneath the recent $120,000–$108,000 consolidation range places the $100,000 zone as the next key level to watch.
He explained that this zone matches the lower end of the on-chain realized price for active traders and has acted as an important support point in the current bull cycle. Beyond its technical role, the $100,000 mark also carries strong psychological weight and lines up with the 365-day moving average, meaning a break below it could lead to another wave of selling.
Market analyst Ted Pillow observed that Bitcoin has already fallen below its previous $108,000 support range and now has limited backing between $101,000 and $102,000. He suggested that reclaiming the $110,000 level could signal the start of a stronger rebound, while failure to do so may keep the market under pressure.
Gold Could Reach $1 Million as Crypto Enters Extreme Fear
While Bitcoin is attempting to regain footing after its recent drop, gold has remained firm, setting new record highs and reaching an estimated market value of around $30 trillion. The yellow metal has stood out as one of the top performers in recent sessions, attracting investors seeking stability amid ongoing economic uncertainty. Data from Glassnode also shows that gold’s performance has exceeded Bitcoin’s by over 20% in the past week.
Economist Peter Schiff, a long-standing critic of Bitcoin, maintained that gold remains the superior store of value and predicted it could reach $1 million per ounce before Bitcoin does. On the other hand, crypto analyst Michaël van de Poppe compared the current pattern in gold’s price movement to that of 1979, describing it as a period of heightened excitement.
He believes the present enthusiasm around gold could eventually redirect capital back into Bitcoin due to what he sees as a mispricing between the two assets. Van de Poppe suggested that Bitcoin could eventually reach $1 million within the next one to two years if the trend reverses in its favor.
Van de Poppe noted that as attention remains focused on gold, Bitcoin could revisit its recent lows. He highlighted that a clear break above $112,000 would be important to regain upward momentum and described the present price levels as an area suitable for buying the dip.
At the moment, overall sentiment across the crypto market remains weak. The Bitcoin Fear and Greed Index currently stands at 29, placing it firmly in the “fear” zone. This reflects a cautious mood among traders, even as Bitcoin attempts to rebound from its latest pullback.