Bitcoin prices continued their downward trend on Friday, hitting their lowest point in over three months as a confluence of factors contributed to the ongoing declines. The leading digital currency hit a low of $103,516.25, based on data. Currently, the cryptocurrency has experienced a decline of approximately 18% from its all-time high of $126,300, which was achieved on October 6, according to additional figures. The digital asset was trading at its lowest value since around June 23. In discussing bitcoin’s recent price fluctuations, analysts pointed out several bearish elements, stressing that the digital currency has faced numerous obstacles since hitting its peak earlier this month. Market analysts have highlighted the effects of tariff announcements from President Donald Trump and their influence on the wider global asset markets.
Jacob Joseph provided insights on these developments. “Bitcoin and the broader digital asset market have largely trailed traditional financial assets in recent weeks, including gold and major equity indices,” he stated. “This underperformance coincides with increased macroeconomic uncertainty following President Trump’s announcement of potential new tariffs on China, which has led to reduced risk appetite across financial markets.” Olivier Mammet, who leads US OTC trading at Gemini, shared insights on these responsibilities and how they have intertwined with significant leverage usage to drive price declines. “BTC has experienced a decline of approximately 16% from its recent peak of around $126,000 last week. The initial drop was related to President Trump’s new tariffs on China that rattled the whole market beyond crypto, but the impact was mostly felt within the crypto space that had good leverage in it,” he stated. “We witnessed several waves of forced liquidations on Friday, with $19 billion in positions being liquidated across various platforms, which clarifies the drop from $126,000 to $110,000 in just that day,” Mammet continued.
Several analysts point out that another factor contributing to the recent weakness in global asset markets, including bitcoin prices, is the uncertainty surrounding the status of certain U.S. banks. On Thursday, October 16, shares of various lending institutions, such as Western Alliance Bancorp and Zions Bancorporation, experienced a significant decline following the announcement of financial difficulties. Western Alliance has disclosed that it anticipates a $50 million loss stemming from two loans. Marc P. Bernegger addressed these developments, stating through emailed commentary that “Reports of losses at US regional banks like Zions Bancorp and Western Alliance due to troubled loans have spilled over into broader financial markets, echoing 2023’s banking stresses and eroding confidence in assets like Bitcoin as well.” Mammet also weighed in on these developments, indicating that “Despite equities trading relatively well (SP500 only down 2-3% from the peak), other negative news such as the uncertainty surrounding regional US bank’s loans is continuing to weigh on the market.”
According to Julio Moreno, short traders have taken the reins in the bitcoin markets this week. “Short positions have been dominating the futures market basically since October 14, and putting additional downward pressure on the price,” he noted. “Apparent demand is the part of the Bitcoin stock that is bought by new bitcoin holders,” Moreno clarified. “Here, the total stock is defined as Bitcoin that has not moved in 1 year or more,” he added. “When the total stock declines it is because there is new demand for Bitcoin and vice versa,” Moreno continued.