Key takeaways:
The price of Bitcoin stabilized as US regional banks reported better-than-expected earnings, alleviating credit concerns.
One analyst suggested that Bitcoin’s bullish trend might conclude in 10 days.
Bitcoin (BTC) dropped over 5% to below $105,000 on Friday, extending a two-day slide as renewed stress in the US banking sector unsettled risk markets and raised worries about overall financial stability. On the same day, US banking stocks exhibited resilience, and global market sentiment steadied ahead of market open.
Despite the stabilization, BTC continued to struggle around the $105,000 mark, not capitalizing on the enhanced risk appetite after regional banks delivered stronger-than-expected earnings, which eased worries of broader credit contagion.
The shift in sentiment came after several regional banks, including Truist Financial, Regions Financial, and Fifth Third Bancorp, reported lower-than-expected provisions for credit losses. These results provided relief to the markets, which had faced a downturn on Thursday when the S&P Regional Banks Select Industry Index dropped 6.3%, led by Zions Bancorporation and Western Alliance Bancorp, both of which revealed loan losses attributable to fraud in distressed commercial mortgage funds.
The positive earnings enabled the S&P Regional Banks Index to recover some losses, with Zions Bancorp bouncing back over 6%, Truist Financial rising by 2%, and Western Alliance increasing by 1.6% in early trading.
European financial stocks, such as Barclays and Deutsche Bank, reduced their earlier losses, while Asian banks like Mizuho Financial and Sumitomo Mitsui also steadied after significant selling pressure.
RBC Capital Markets noted that regional banks are “well reserved for potential losses” and have strengthened their 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 an additional boost, US President Donald Trump announced that high tariffs on Chinese goods “will not last” and revealed plans for an upcoming summit with Chinese President Xi Jinping in two weeks. This statement, following Beijing’s willingness to engage in trade discussions, helped spark a rebound in global markets, with US stock futures rising 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 analysts noted a significant calming in risk sentiment. Cointelegraph reported earlier this week that the recent declines in crypto and equities “do not imply long-term fundamental issues,” indicating that the market is navigating short-term volatility instead of systemic distress.
Nonetheless, some analysts warn that Bitcoin’s current bull cycle might be approaching its conclusion. Analyst CryptoBird mentioned in a post that the Bitcoin “bull run ends in 10 days,” predicting this based on historical trends.
Related: Bitcoin ‘bull run is over’, traders say, with 50% BTC price crash warning
This article does not provide investment advice or recommendations. All investments and trading activities carry risk, and readers should perform their own research before making decisions.
