Bitcoin Plunges to 15-Week Low as US Banking Fears Trigger 2023 Flashbacks Bitcoin tumbled to its lowest price in fifteen weeks, breaching the 105,000 dollar support level and sending shockwaves through the crypto market. The sharp downturn appears to be directly linked to renewed stress in the United States regional banking sector, echoing a similar pattern that played out in 2023 when banking crises frequently acted as a catalyst for cryptocurrency volatility. The price collapse shifted the market’s focus squarely to the next major psychological and technical barrier, the 100,000 dollar level. Traders are now watching to see if this key round number will hold as support or if the sell-off has further to run. The rapid descent has injected a significant amount of fear and uncertainty into the market, which had recently been more focused on all-time highs and a prolonged bullish trend. The parallel to 2023 is striking. During that period, the failure of several US regional banks, including Silicon Valley Bank and Signature Bank, led to a surge in Bitcoin’s price as investors sought assets outside of the traditional financial system. This time, however, the initial market reaction has been the opposite, with banking worries seemingly causing a flight to safety and a sell-off in perceived riskier assets like cryptocurrencies. This suggests that in the short term, traders are treating crypto as a risk-on asset class that gets sold during periods of traditional financial instability, rather than a safe haven. Analysts are pointing to the specific nature of the current banking concerns. Reports of rising loan defaults and commercial real estate weaknesses have put several regional banks under scrutiny. As investors grow concerned about the stability of these financial institutions, it can create a liquidity crunch across markets. When such conditions emerge, participants often sell whatever they can to raise cash, and highly liquid markets like crypto are often the first to see outflows. This dynamic seems to be overpowering the narrative of Bitcoin as a decentralized alternative to the banking system, at least for now. The break below 105,000 dollars is technically significant. That level had served as a strong support zone for weeks, and its failure indicates a shift in momentum. The move has likely triggered a wave of automatic sell orders from leveraged traders, accelerating the downward move. Market sentiment, which was overwhelmingly greedy just a few weeks ago, has now flipped toward fear. All eyes are now on the 100,000 dollar mark. A sustained break below that level could open the door for a deeper correction toward the next significant support areas. For the bulls, reclaiming the 105,000 dollar level quickly is crucial to stem the bleeding and restore some confidence. The coming days will be critical in determining whether this is a healthy pullback within a larger bull market or the start of a more substantial downturn. The reaction of the traditional markets to the ongoing banking stress will likely be the primary driver for Bitcoin’s next major move.
