Bitcoin dropped sharply to a four-month low of $103,850 on Friday, losing over $5,000 in a single session, as renewed stress in the U.S. regional banking sector fueled concerns about financial stability. Stocks of banks like Zions Bancorporation and Western Alliance plunged amid reports of significant loan write-offs and weakening balance sheets, reviving fears of a repeat of the 2023 banking crisis.
Strike CEO Jack Mallers argued that Bitcoin is acting as a forward indicator of liquidity stress, posting on social media that "Bitcoin is accurately smelling trouble right now. The U.S. is going to have to inject some of that sweet, sweet liquidity soon and print a ton of money or else their fiat empire goes kaboom." He highlighted falling bond yields and widening credit spreads as evidence, predicting that Bitcoin would lead other assets when the Federal Reserve potentially intervenes with easing measures.
Despite regulatory changes after the 2023 crisis, confidence in regional lenders remains fragile, with analysts noting moral hazard and ongoing risks from commercial loans. Bitcoin later recovered to around $107,000 on Saturday but remains over 15% below its all-time high. BitMEX co-founder Arthur Hayes viewed the drop as a buying opportunity, suggesting that if the banking turmoil escalates, a 2023-like bailout could occur, potentially benefiting Bitcoin. Meanwhile, Bitcoin skeptic Peter Schiff promoted gold, but Anthony Pompliano countered by emphasizing Bitcoin's long-term gains of 15,000% since 2020.
SOL
AVAX
TAO
LUNA
LIVE
XRP
HYPE