Bitcoin dips below $108,000, triggers $147 million in liquidations

Markets across the board are in risk-off mode as concerns mount over the US regional banking sector and broader credit market stress. The ripple effect is particularly evident in cryptocurrency markets, where bitcoin has slipped below the recent $108,000 (Dh396,630) level, triggering liquidations in the bitcoin perpetual futures market totaling $147 million, according to Coin Glass data.

More speculative altcoins have been hit harder, with declines exceeding 10 per cent in some cases. Analysts are now watching the $100,000 level as potential support for bitcoin.

Simon Peters, Crypto Analyst at eToro, said: “If concerns in the US regional banking sector remain isolated and do not escalate into systemic risk, we could see a bounce as investors take the opportunity to buy [during] the dip. An end to the government shutdown and the release of some favourable US economic data could also provide a short-term tailwind to prices. We wait to see how markets respond.”

Despite the recent volatility, the crypto market continues to attract attention as investors assess both risk and opportunity in a shifting macroeconomic landscape.

According to Bloomberg, Bitcoin fell on Friday and was set for a second straight week of losses as risk appetite for cryptocurrencies was battered by concerns over US-China trade tensions and potential credit risks.

Crypto markets tracked declines in broader risk-driven assets, with Wall Street and global stock markets retreating on rising economic uncertainty. An ongoing US government shutdown weighed on sentiment, especially with the delay of several key economic readings.

Bitcoin fell 1.9 per cent to $108,830.2 by 01:37 ET (05:37 GMT). The world’s largest crypto was set to lose about 1.7 per cent this week, after clocking a 10 per cent drop in the prior week.

Bitcoin struggled to advance after a flash crash wiped out nearly half a trillion dollars of crypto market capitalisation last week, dragging the world’s biggest crypto as low as $103,000. The crash stemmed from heightened US-China trade tensions, and also saw a record-high, $16 billion liquidation of long positions.

While the coin did recoup some losses this week, especially on the back of dovish signals from the Federal Reserve, it and broader crypto markets remained squarely on the backfoot.

Bitcoin also traded well below early-October record highs of over $126,000.

Risk aversion increased this week amid growing concerns over credit risks in regional US banks. Said concerns sparked deep losses in US bank stocks on Thursday, and spilled over into broader markets.

XRP issuer Ripple Labs is leading efforts to raise $1 billion in funding to build a stockpile of the token, Bloomberg reported on Friday.

While more buy actions bode well for XRP, the token showed little positive reaction to the report, falling 3.7 per cent to $2.3385. The token also remained close to a 11-month low hit during last week’s flash crash.

Bloomberg reported the money will be raised through a special purpose acquisition vehicle, while Ripple will also contribute some of its own XRP to the stockpile.

XRP was trading down nearly 2 per cent this week after a 19.8 per cent slump last week.

Broader crypto prices fell tracking Bitcoin on Friday, although they were trading above lows hit last week.

World no.2 crypto Ether fell 3.7 per cent to $3,889.0, while Binance’s BNB fell 5.2 per cent to $1,127.0.

Cardano and Solana fell more than 5 per cent each.

Among meme coins, Dogecoin fell 5.7 per cent and $TRUMP fell 3.7 per cent.