Now That Bitcoin USD is No More, What Comes Next? Bitcoin Value Dips Under $106K as U.S. Banking Chaos Revives 2023 Memories

Is the global financial system on the verge of collapse while you’re finding it amusing? BTC USD plummeted to a 15-week low of $105,000 on Friday as renewed anxiety over US regional banks disturbed markets and reignited concerns of a broader credit crisis.

Here’s a quick overview:

• The fallout from recently failed US lender Tricolor, and now First Brands, alongside a rise in fraud allegations against lending institutions, is starting to unsettle the entire Regional Bank Sector.
• All Regional Bank indexes dropped by -5% to -7% within a single trading session.
• Prominent banks like JP Morgan are beginning to report write-off losses stemming from Tricolor.

An industry-wide Silicon Valley Bank 2.0 complete with a frenzy of shark cannibalization, anyone? Well, the key point is that we all had a blast.

Turns out we were all correct, and banks have been lending against worthless private credit for the past five years

H/t @SEC_digger for the chart pic.twitter.com/Wy4Iqop9rB

— Daniel A. Saedi (DataManDan) (@TheRealDanSaedi) October 16, 2025

The decline followed reports that Zions Bancorporation wrote off $50 million in fraudulent commercial loans, leading to more than a 6% drop in its stock and triggering a wider price drop in regional banks.

So what’s next? Is the Bitcoin USD price doomed?

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Is Bitcoin USD Price Doomed? Bank Contagion Fears Affect Crypto and Equities

Analysts at 99Bitcoins recognize that BTC could “drop directly to $98,000” if critical supports collapse. BTC has forfeited the $108,000 mark, leaving limited price floor up until $101,000-$102,000, according to investor Ted Pillows. Additionally, BTC has now touched its 200-day moving average for the first time in half a year, a significant indication of diminishing momentum.

“If further revelations uncover more losses, weaker entities could be aggressively re-rated downwards,” cautioned Brian Mulberry from Zacks Investment Management.

The apprehension was uncommon, tearing into crypto as leveraged positions were wiped out once again. CoinGecko data indicates that BTC is valued around $105,006, down almost 6% for the day, while ETH has declined 5% to $3,720.

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Gold Climbs as Safe-Haven Trade Resurfaces, Is It The Superior Option?

As crypto struggled, gold achieved new all-time highs near $2,650 per ounce, continuing its surge amid the risk aversion. The contrast between BTC and gold reignited an old debate about which asset is the superior hedge against systemic instability.

“It’s not merely a de-dollarization strategy but also a de-bitcoinization tactic,” stated Peter Schiff, forecasting that gold might “attain $1 million before Bitcoin.”

Nevertheless, some analysts suggest a potential rotation. Crypto crypto holder Jelle pointed out that profits may soon “flow out of gold” as markets look for risk-oriented exposure if volatility decreases.

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Trading market Perspective: 2023 Rewind or False Alarm?

The similarities to last year’s SVB bank collapse are challenging to overlook. Jamie Dimon cautioned earlier this week that “spotting one cockroach often means there are more around.” Presently, BTC appears fragile, and we remain uncertain about how far this downward trend may persist.

Glassnode indicates that long-term holders are unfazed, consistently withdrawing Bitcoin from exchanges. This ongoing confidence may create the groundwork for the next upward move, but for now, the full extent of the bank contagion is uncertain.

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The post Now That Bitcoin USD is Dead What’s Next? BTC Price Slides Below $106K as U.S. Bank Turmoil Rekindles 2023 Flashback appeared first on 99Bitcoins.