Key Takeaways
Bitcoin and major cryptocurrencies experienced significant declines amid US regional banking stress and prolonged government shutdown concerns.
The crypto market capitalization fell 6% as investors moved toward safe-haven assets following disclosures of substantial loan losses by US regional banks.
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Bitcoin lost more than $5,000 in less than six hours on Friday morning, pulling most altcoins lower as regional banking crisis fears mount and the US government shutdown drags into its third week.
Bitcoin plunged from nearly $109,000 to $103,500 earlier today before rebounding to above $106,000, according to CoinGecko. That was a 4.5% drop in the last 24 hours.
Over the same period, Ethereum and XRP each fell around 6%, Solana slid roughly 8%, and BNB declined close to 10%.
The total value of the crypto market dropped 6% to $3.6 trillion, resuming its decline last recorded after President Trump’s comments on US-China trade tensions.
Renewed worries about the health of US regional banks may have contributed to the latest market selloff.
This week, Zions Bancorporation and Western Alliance revealed huge loan losses and potential fraud-related exposures, which rattled investor confidence, sent banking stocks lower and drove a flight to safe-haven assets like gold.
Gold inched closer to $3,400 on Friday after continuing to set fresh highs throughout 2025.
The troubles facing those banks are rekindling anxiety over a potential credit squeeze reminiscent of the Silicon Valley Bank (SVB) collapse in March 2023. However, experts say the situation has not yet reached that scale.
Still, analysts warn that fears of a wider credit crunch could escalate, especially if more banks disclose losses linked to bad loans or off-balance-sheet exposures. Plus, the prolonged government shutdown could exacerbate the wobble, potentially turning it into a systemic crisis.
As banking stress returns, analysts say Bitcoin is on sale
Arthur Hayes, co-founder of BitMEX, says Bitcoin is “on sale” amid renewed weakness in US regional banks.
In a post on X, Hayes stated that if the current wobble turns into a crisis, investors should be ready for a 2023-style bailout and view it as a buying opportunity.
“If this US regional banking wobble grows to a crisis, be ready for a 2023-like bailout,” Hayes wrote. “And then go shopping — assuming you have spare capital. I got my list, what’s on yours fam?”
