Key takeaways:
Bitcoin prices stabilized after US regional banks reported stronger-than-expected earnings, alleviating credit concerns.
One analyst forecasted that Bitcoin’s bull run could conclude in 10 days.
Bitcoin (BTC) dropped more than 5% to trade below $105,000 on Friday, extending its two-day decline as renewed stress in the US banking sector unsettled risk markets and raised alarms about broader financial stability. On Friday, US banking stocks demonstrated resilience, and global market sentiment steadied in pre-market trading.
Nevertheless, BTC continued to face resistance near $105,000, failing to capitalize on an improved risk appetite following stronger-than-expected earnings from regional lenders, which alleviated fears of widespread credit contagion.
The recent shift in sentiment followed reports from several major regional lenders, including Truist Financial, Regions Financial, and Fifth Third Bancorp, which disclosed lower than anticipated provisions for credit losses. These results provided welcome relief to markets after Thursday’s drop, when the S&P Regional Banks Select Industry Index fell 6.3%, primarily due to Zions Bancorporation and Western Alliance Bancorp revealing loan losses linked to fraud in struggling commercial mortgage funds.
The positive earnings reports aided in the S&P Regional Banks Index recovering losses, with Zions Bancorp rising over 6%, Truist Financial up 2%, and Western Alliance climbing 1.6% in early trading.
European financial institutions, including Barclays and Deutsche Bank, trimmed earlier losses, while Asian banks such as Mizuho Financial and Sumitomo Mitsui steadied following significant sell-offs.
RBC Capital Markets noted that regional banks “remain well reserved for potential losses” and have strengthened capital since 2023, indicating that the recent sell-off may have been exaggerated.
Related: How low will Bitcoin go? Regional US ‘bank stress’ pushes BTC toward $100K
Trump’s tariff comments boost optimism
In a further boost to sentiment, US President Donald Trump confirmed that high tariffs on Chinese goods “will not persist” and announced a summit with Chinese President Xi Jinping in two weeks. His statement, combined with Beijing’s willingness to collaborate on trade issues, led to a rebound in global markets, with US stock futures increasing by 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. pic.twitter.com/4cfnVAzCNX
— The Kobeissi Letter (@KobeissiLetter) October 17, 2025
Market observers noted a distinct calming in risk sentiment. Cointelegraph reported earlier this week that recent pullbacks in crypto and equities “do not have long-term fundamental implications,” suggesting that the market is navigating through short-term volatility rather than systemic distress.
However, some analysts warn that Bitcoin’s current bull cycle may be nearing its conclusion. Analyst CryptoBird shared in an X post that Bitcoin “bull run ends in 10 days,” basing the prediction on historical cycle trends.
Related: Bitcoin ‘bull run is over’, traders say, with 50% BTC price crash warning
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
