Bitcoin’s price has seen a decline, dropping below $105,000 as uncertainties in the US banking sector impacted market confidence. However, stronger-than-expected earnings from regional banks have somewhat alleviated these concerns, raising questions about the future trajectory of Bitcoin (BTC).

Key Highlights:

• Bitcoin stabilized as regional banks showcased unexpectedly robust earnings, reducing credit anxiety.
• An analyst suggested the current Bitcoin bull run might conclude shortly.

BTC dropped over 5% to trade under $105,000 on Friday, continuing its two-day downward trend influenced by renewed banking challenges that emphasized fears over the financial system’s stability. Nevertheless, US banking stocks exhibited recovering signs, stabilizing overall market sentiment before the market opened.

Bitcoin price chart Source: Cointelegraph/TradingView

Despite stronger regional lender earnings, Bitcoin has struggled to gain much from the resulting positive market sentiment. Major regional banks, including Truist Financial, Regions Financial, and Fifth Third Bancorp, reported lower-than-expected credit loss provisions, bringing some relief after the S&P Regional Banks Select Industry Index faced a drop of 6.3% earlier this week, led by Zions Bancorporation and Western Alliance Bancorp.

As the regional banks bounced back, Zions Bancorp surged over 6%, Truist Financial 2%, and Western Alliance up 1.6%. European banks such as Barclays and Deutsche Bank also trimmed earlier losses, while Asian banks like Mizuho Financial steadied.

RBC Capital Markets expressed optimism, stating that regional banks are well-prepared for possible losses, suggesting a possible overreaction in the recent sell-off.

Trump’s Tariff Statements Raise Optimism

Adding to positive market sentiment, President Trump announced that steep tariffs on Chinese imports are set to be lifted and proposed a summit with President Xi Jinping in the upcoming weeks. This announcement has uplifted global market indices, with US stock futures jumping 1.2%.

“BREAKING: S&P 500 futures erase losses as President Trump says high tariffs on China will NOT remain. Futures are now +75 points from their overnight low.” — The Kobeissi Letter (@KobeissiLetter)

Market analysts noted a calming in risk sentiment. Earlier reports indicated the market pullbacks do not hold long-term implications, indicating temporary volatility instead of systemic issues. Some analysts cautioned that the Bitcoin market may soon see the end of its current bull cycle, referencing an analyst’s prediction that the bull run could conclude in ten days based on historical patterns.

This article does not constitute financial advice. All investments carry risks, and readers should conduct independent research before making decisions.