BTCUSD
−2.99%
ZION
−13.14%
WAL
−10.81%
BTCUSD
−3.28%
KEY POINTS:
Bitcoin prices slide
OG coin hits July lows
Traders dump risk assets
One thing after another, Bitcoin has now retreated about 17% from its record high hit just 10 days ago.
🔎 Bitcoin Tumbles Under $105,000
Bitcoin prices
BTCUSD
were headed south Friday morning after traders rushed to panic-sell their high-risk asset amid brewing global troubles over bank lending.
The orange coin shed more than 3% in the first hours of the session, floating under $105,000 for the first time since July. Zoomed out, Bitcoin has now erased 17% from its record high of $126,000 hit just ten days ago.
The whole crypto space was in retreat today, following in the footsteps of global markets. Traders everywhere dumped risk and jumped into gold after a pair of US regional lenders got exposed for doing risky things.
🚨 A Move Away from Risk
A credit shakeup has swept Zions Bancorp
ZION
and Western Alliance
WAL
. Allegedly, the banks have been involved in fraudulent activities related to lending to consumers who might be able to pay back their loans. Zions said it had to take a $50 million charge-off.
The news sent tremors across financial markets not just in the US, but also Asia and Europe where equity markets moved lower.
Could this be a sign of a looming liquidity crisis? Or maybe a broader systemic collapse? That’s not yet known and hence the defensive reaction in investors who want to wait out the storm in safer places. Gold says hi.