- Bitcoin dropped below $105,000 on Friday, continuing from Thursday’s market decline.
- Concerns about the stability of U.S. regional banks drove a broad sell-off across cryptocurrencies and related stocks.
- Cryto-linked equities like MicroStrategy (MSTR) and Bitmine Immersion (BMNR) fell alongside major tokens such as Ethereum, Solana, XRP, and Binance Coin (BNB).
- Total crypto market value dropped over 6%, with more than $1.2 billion in positions liquidated in the past 24 hours.
- Retail investor sentiment shifted from ‘bullish’ to ‘neutral’ or ‘bearish’ across top cryptocurrencies as trading volumes remained high.
Bitcoin fell below $105,000 during early trading on Friday, extending Thursday’s losses as worries about the stability of U.S. regional banks continued to roil markets. The sharp decline impacted crypto-related stocks and digital assets, with significant drops observed across the sector.
The price of Bitcoin slid nearly 6% in the past 24 hours to around $104,800, based on CoinGecko data. Shares of MicroStrategy (MSTR), a company often viewed as a proxy for Bitcoin exposure, dropped as much as 1.7% in premarket trading. Retail sentiment around Bitcoin shifted to ‘neutral’ after previously being ‘bullish’, and message activity remained high.
Other major cryptocurrencies also experienced declines. Ethereum fell about 7.5% in the past day, with retail sentiment moving to ‘neutral’. Shares of Bitmine Immersion (BMNR), the largest Ethereum-backed digital asset treasury, dropped as much as 1.45% premarket. Solana and XRP each declined more than 8%, while Binance Coin (BNB) posted the steepest fall among top ten coins, dropping nearly 11%. Sentiment around these assets either turned ‘neutral’ or slipped to ‘bearish.’
Market participants attributed the sell-off to renewed fears over U.S. regional banking stability. According to Derek Lim, head of research at Caladan, “as concerns spread through the financial sector, risk appetite weakened pretty severely across all markets. Naturally, crypto dropped as traders initiated a flight to safety.” He pointed to new disclosures from Zions Bancorp and Western Alliance on Thursday, which triggered substantial declines in bank shares and increased overall risk aversion.
According to CoinGlass data, more than $1.2 billion in crypto positions were liquidated over the past 24 hours, with $458 million in Bitcoin and $278 million in Ethereum alone. The total cryptocurrency market cap fell by over 6%, reaching its lowest level since July, as reported by Decrypt.
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