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Bitcoin prices stabilized as US regional banks announced higher-than-expected profits, easing credit concerns.
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One analyst predicted that the Bitcoin bull market could end within 10 days.
Bitcoin (BTC) fell more than 5% on Friday, trading below $105,000, extending its decline for a second day as renewed U.S. banking stress rattled risk markets and reignited broader financial stability concerns. On Friday, US bank stocks showed signs of resilience and global market sentiment stabilized premarket.
However, BTC did not benefit from an improvement in risk appetite as regional financial institutions posted higher-than-expected profits and concerns about credit expansion eased, and the price continued to trade around $105,000.
The recent shift in sentiment comes after several major regional financial institutions, including Trust Financial, Regions Financial and Fifth Third Bancorp, reported lower-than-expected credit loss reserves. The results came as a relief to the market after Thursday’s disastrous loss in the S&P Regional Banks Sector Index, which fell 6.3% after Zions Bancorp. and Western Alliance Bancorp disclosed loan losses stemming from fraud at their bankrupt commercial mortgage funds.
Strong earnings helped the S&P Regional Bank Index recover some losses, with Zions Bancorp rebounding more than 6%, Trust Financial up 2% and Western Alliance 1.6% in early trading.
European financial stocks such as Barclays and Deutsche Bank have pared their early losses, while Asian financial institutions such as Mizuho Financial and Sumitomo Mitsui have also firmed up after heavy selling.
RBC Capital Markets said local banks are “well prepared for potential losses” and are increasing their capital beyond 2023, suggesting the recent sell-off in stocks may have been overdone.
Related: How far will Bitcoin fall? BTC approaches $100,000 due to “banking stress” in US region
President Trump’s tariff remarks raise optimism
Adding to the improved tone, US President Donald Trump confirmed that high tariffs on Chinese goods “will not continue” and announced plans for a summit with Chinese President Xi Jinping within two weeks. The statement sparked a rally in global markets, with U.S. stock futures rising 1.2% after Beijing signaled its willingness to cooperate on the trade dispute.
Breaking news: President Trump says high tariffs on China will not continue, S&P 500 futures erase losses.
Futures are currently +75 points from overnight lows. pic.twitter.com/4cfnVAzCNX
— Kobeissi Letter (@KobeissiLetter) October 17, 2025
Market participants said the tone of risk sentiment has calmed down significantly. Earlier this week, Cointelegraph reported that the recent sell-offs in cryptocurrencies and stocks “have no impact on long-term fundamentals,” suggesting the market is moving through short-term volatility rather than systemic distress.
However, some analysts are warning that Bitcoin’s current bullish cycle may be coming to an end. Analyst Crypto Bird said on XPost that the Bitcoin bull market will “end in 10 days” based on his predictions based on historical cycle patterns.
Related: Bitcoin ‘bull market is over’, traders warn of 50% drop in BTC price
This article does not contain investment advice or recommendations. All investment and trading moves involve risk and readers should conduct their own research when making decisions.