FX.co ★ Bitcoin Slides to 3-½-Month Low

Bitcoin dropped to approximately $106,000 on Friday, marking its lowest point since early July, as a fresh surge of risk aversion hit global financial markets. Market sentiment worsened following new indications of credit stress among US regional banks, reigniting fears of a potential banking crisis similar to that of 2023, which necessitated intervention by the Federal Reserve to stabilize the financial system. Additional pressure on risk appetite came from rising US-China trade tensions, the ongoing US government shutdown, and increasing fiscal concerns. The recent downturn in the market, triggered by President Donald Trump's renewed tariff threats against China, has resulted in approximately $20 billion in cryptocurrency liquidations. Traders further reduced their exposure amid escalating concerns about stricter regulatory oversight.