Bitcoin Price Crash Mirrors 2023 Banking Fallout as Gold Price Hit New Highs
The post Bitcoin Price Crash Mirrors 2023 Banking Fallout as Gold Price Hit New Highs appeared first on Coinpedia Fintech News
Bitcoin price crashed below $105,000 on Friday, marking its lowest level since June. The drop came as stress in U.S. regional banks stirred fears similar to March 2023, when a banking crisis triggered a sharp crypto crash before a rebound. Traders are now closely watching the $100,000 level as critical support. Some warn that if it fails, Bitcoin could slide further toward $98,000.
Banking Woes Spill Into Crypto
Concerns over U.S. regional banks have hit both traditional and crypto markets. Banking stocks began falling in a pattern reminiscent of last year, causing ripple effects across cryptocurrencies. Earlier support levels for Bitcoin, including daily moving averages, failed to hold, pushing the price down to its 200-day moving average for the first time in over six months. Traders remain divided: some hope for a rebound above $110,000, while others expect more pain before relief arrives.
Traders Watch Price Patterns
Analysts are paying close attention to short-term movements. Some traders noted attempts to “fill” candle wicks from last week’s charts, briefly lifting Bitcoin to $102,000 on Binance. Weak support appears between $101,000 and $102,000 if the $108,000 level does not hold. Overall, the market remains nervous amid global economic pressures, including U.S.-China trade tensions .
Altcoins Lose Ground
The Altcoin Season Index also reflected the shift in market sentiment. On October 17, it dropped sharply to 25, down from 78 a month earlier, signaling a rotation back to Bitcoin. Over the past week, the index averaged 35, and only around 25 of the top 100 cryptocurrencies outperformed Bitcoin in the last 90 days. The move shows investors are favoring Bitcoin over altcoins amid renewed market volatility.
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Gold vs Bitcoin
While Bitcoin struggles, gold continues to hit new highs, attracting investors seeking safety. Bitcoin critic Peter Schiff predicted that gold could reach $1 million per ounce before Bitcoin achieves the same milestone. He argues that Bitcoin has yet to prove itself as a reliable alternative to the U.S. dollar or digital gold. Some traders, however, see this as a short-term phase, expecting money to flow from gold back into Bitcoin.
Current Market Sentiment
The current market shows a mix of caution and opportunity. Banking stress is pressuring Bitcoin and the broader crypto market, while gold remains a safe haven. Traders are closely monitoring Bitcoin’s key support levels and the ongoing rotation between gold and crypto. The next few days will likely reveal whether Bitcoin can hold above $100,000 or follow last year’s slide.
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FAQs
Bitcoin dropped below $105,000 as fears over U.S. regional banks sparked market panic, echoing past crises and driving investors toward safer assets like gold.
Stress in U.S. regional banks is shaking investor confidence, causing sell-offs in both stocks and crypto as traders shift to safer investments.
Many investors view gold as safer amid financial uncertainty, but some expect funds to return to Bitcoin once market fears ease and stability returns.
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