Market Update

Key points:

• Bitcoin hits its lowest levels since June due to renewed concerns over US banking instability.
• Traders worry about $100,000 potentially failing as a support level.
• Peter Schiff forecasts that gold may reach $1 million per ounce before Bitcoin does.

Bitcoin (BTC) experienced a significant drop, hitting 15-week lows on Friday as the effects of a crisis in US banks weighed heavily on its price. The cryptocurrency formerly known for its resilience is now facing pressure from worries about a repeat of last year’s financial turmoil.

Cointelegraph Markets Pro and TradingView data revealed Bitcoin dropped below $106,000 for the first time since June.

Traders reacted negatively to the downward slide of US regional banking stocks which started declining similarly to events back in March 2023. Bitcoin and other cryptocurrencies saw a sharp decline followed by a quick recovery but not before BTC/USD fell below the $20,000 mark.

Trading insights indicated a potential retest of crucial support levels for Bitcoin. An X post by the trader Borg commented:

“If $BTC loses this support, we are going straight to $98,000. Good Luck everyone.”
“Si $BTC pierde este soporte, iremos directamente a $98,000. Buena suerte a todos.”

Further insights highlighted bearish pressures, noting some attempts to stabilize the price around previous support levels, while suggesting a possible turn towards $98,000.

The prevailing market conditions also affected gold, which achieved new all-time highs, separating itself from Bitcoin’s performance. Schiff articulated his views:

“Gold is more likely to hit $1 million than Bitcoin.”
“Es más probable que el oro alcance los $1 millón que Bitcoin.”

He asserted a shift away from Bitcoin being viewed as a suitable alternative to the US dollar, prompting discussions about profit-taking from gold as traders increasingly rotate back into BTC.