tl;dr
Bitcoin plummets to $104,597, its lowest in 15 weeks, as U.S. banking sector turmoil reignites fears of a deeper crypto meltdown. Traders warn of a potential $98,000 drop, while gold surges, sparking debates over Bitcoin's future as 'digital gold.'
**Bitcoin Plummets to 15-Week Lows Amid U.S. Banking Crisis, Traders Warn of Further Decline**
Bitcoin (BTC) fell to a 15-week low of $104,597 on Friday, marking a significant downturn as concerns over the U.S. banking sector intensified. The cryptocurrency’s price drop came amid a broader market selloff, fueled by fears of a potential banking crisis reminiscent of March 2023. Analysts and traders are now closely monitoring key support levels, with some predicting a further decline to $98,000 if the trend continues.
The slump followed a sharp decline in U.S. regional bank stocks, which mirrored the volatility seen during the 2023 banking turmoil. In March, Bitcoin and altcoins experienced a flash crash, with BTC/USD plunging below $20,000 before rebounding. While the crisis at the time was "contained," many now question whether the underlying issues have been resolved.
**Traders Warn of Critical Support Levels**
The Kobeissi Letter, a crypto analysis platform, noted that the current banking sector struggles could lead to renewed pressure on Bitcoin. Some traders are warning of a potential retest of the $100,000 support level, which has been a key psychological threshold for the asset. “If Bitcoin fails to hold $100,000, we could see further downside,” one trader wrote on X.
Technical indicators also suggest vulnerability. Earlier moving averages (MAs) on daily charts failed to act as support, pushing Bitcoin to touch its 200-day moving average for the first time in over six months. Crypto investor Ted Pillows highlighted the risk, stating, “Bitcoin has lost the $108,000 support level. Now there’s little to no support until $101,000-$102,000.” He added that a rebound above $110,000 could signal a recovery, but a failure to do so might mean “more pain before relief.”
**Market Dynamics and the Gold Debate**
The downturn in Bitcoin coincided with a surge in gold prices, which hit new all-time highs as investors flocked to the precious metal. Peter Schiff, a prominent Bitcoin skeptic and chairman of Europac, argued that gold’s rise signals a “de-bitcoinization” trend. “Bitcoin has failed the test as a viable alternative to the U.S. dollar or digital gold,” he claimed, predicting that gold could reach $1 million per ounce before Bitcoin does.
However, some traders see the selloff as an opportunity. Crypto analyst Jelle suggested that a “rotation” into Bitcoin might be imminent, noting, “It makes sense to see profits flow out of gold soon with the way the market behaves.” A chart accompanying the discussion illustrated Bitcoin’s historical relationship with gold, showing periods where the cryptocurrency led or caught up with the precious metal’s performance.
**What’s Next for Bitcoin?**
As the market grapples with the fallout from the U.S. banking crisis, Bitcoin’s path remains uncertain. Traders are closely watching for signs of a rebound, with some speculating that the asset could fill the “daily candle wick” from earlier in the week, which saw prices dip to $102,000 on Binance. If Bitcoin fails to stabilize, the next key target could be the $98,000 level, a level not seen since early 2023.
For now, the crypto community remains divided—some see the current crash as a buying opportunity, while others brace for further losses. As the interplay between Bitcoin, gold, and the broader financial system unfolds, the coming weeks will be critical in determining the cryptocurrency’s next move.