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 support level, triggering liquidations in the bitcoin perpetual futures market totalling $147 million, according to Coinglass 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 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.
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