Crypto Reporter
Shalini Nagarajan
Crypto Reporter
Shalini Nagarajan
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Bitcoin extended its decline on Friday, slipping below $109,000 as a fresh wave of risk aversion gripped global markets. The drop came as global markets turned defensive, with equities slipping, bonds gaining and gold reaching a fresh record.
It last traded 2.4% lower on the day around $108,503, and is down over 10% in the last week.
Asian stocks mirrored Wall Street’s overnight losses, with investors retreating from risk assets after signs of credit strain resurfaced among US regional banks.
Sentiment in equities also took a hit from rising trade tensions between the US and China. Beijing on Thursday accused Washington of stoking panic over its rare earth export controls and rejected a White House call to roll back the curbs, rattling already fragile market confidence.
Altcoins Struggle as Market Pressure Builds on Weaker Momentum
Bitcoin, which recently hit a record high of $126k on Oct. 6, has struggled to find a footing since last week’s sharp selloff. That downturn was triggered by a wave of liquidations exceeding $19b, compounded by jitters over US–China trade friction. The selloff swept across major tokens, leaving investors wary of further downside.
Ether dropped 2.2% to $3,931, while XRP slipped 2.7% to $2.36. Market watchers said momentum in altcoins remained weak as traders reduced exposure ahead of potential regulatory and macroeconomic headwinds.
Ryan Lee, chief analyst at Bitget, said XRP is facing near-term pressure due to whale transfers and exchange inflows. “Key support is forming between $2.10 and $2.30,” he said. “A breakout toward $3.00–$3.25 remains possible if ETF approvals materialize by late October, which would likely trigger renewed institutional inflows.”
He added that Ripple’s recent $1b acquisition of GTreasury enhances XRP’s position in corporate finance, expanding its utility for settlements beyond speculative trading.
Capital Rotates Toward Utility Tokens as Solana Leads Market Recovery
In contrast, Solana is showing stronger momentum, Lee said, targeting a range between $210 and $250. Growth in DeFi activity and optimism around potential ETF approvals continue to support its performance.
“Both assets are benefiting from a broader capital rotation into utility-driven tokens,” he said, noting that investors are focusing more on blockchain projects with real-world applications.
Meanwhile, concerns in traditional markets have added to the cautious tone. The collapses of First Brands Group and Tricolor Holdings revived fears of hidden credit losses, while accounting write-downs tied to fraud at Zions Bancorp and Western Alliance wiped out more than $100b in US banking market value in a single day.
With credit worries mounting, gold and silver extended their rallies to fresh highs. Bitcoin, often touted as digital gold, has yet to follow suit, falling 6.3% over the past week, its sharpest drop since March.
As Bitcoin Matures, Its Price Action Mirrors Traditional Markets More Closely
Dom Harz, co-founder of BOB, said Bitcoin’s growing integration with mainstream finance could explain its closer alignment with broader markets.
Harz added that institutional adoption will accelerate innovation in Bitcoin-based decentralized finance. “These institutions holding BTC will want to unlock Bitcoin’s utility and put their assets to work by securely deploying BTC natively into DeFi protocols,” he said.
For now, Bitcoin’s ability to hold above the $110,000 threshold will likely depend on macroeconomic catalysts. Traders remain cautious, watching for signals from the US Federal Reserve on interest rates and how trade tensions might influence risk appetite heading into the final quarter of the year.
