Bitcoin Slips to $108K as Trade Tensions and Credit Fears Hit Crypto Markets
Bitcoin prices fell on Friday, marking a second consecutive week of losses as investor appetite for cryptocurrencies weakened amid U.S.-China trade tensions and rising credit risks in the financial sector.
Global Market Weakness Pressures Bitcoin
Crypto markets mirrored declines across global equities and Wall Street, both hit by growing economic uncertainty. The ongoing U.S. government shutdown further dampened sentiment, delaying key economic data releases and fueling risk aversion.
By 01:37 ET (05:37 GMT), Bitcoin (BTC) traded at $108,830, down 1.9% for the day and heading for a 1.7% weekly loss — extending last week’s steep 10% drop.
The world’s largest cryptocurrency struggled to recover after last week’s flash crash, which wiped out nearly $500 billion in crypto market capitalization and sent BTC tumbling as low as $103,000. The selloff, triggered by renewed trade frictions between Washington and Beijing, also saw a record $16 billion in long position liquidations.
Although Bitcoin managed to regain some ground earlier this week, boosted by dovish remarks from the Federal Reserve, it remains under pressure — trading well below early October’s record highs above $126,000.
Credit Risk Concerns Add to Market Jitters
Market sentiment worsened as investors grew anxious about credit risks among regional U.S. banks. The fears sparked a selloff in U.S. financial stocks on Thursday, which spilled over into global and crypto markets, further weighing on risk assets like Bitcoin.
Ripple Seeks $1 Billion for XRP Buyback Plan
In other crypto news, Ripple Labs — issuer of XRP — is reportedly planning to raise $1 billion to fund large-scale XRP buybacks, according to a Bloomberg report.
The funding will reportedly come through a special purpose acquisition vehicle (SPAC), with Ripple also contributing part of its own token holdings.
Despite the announcement, XRP fell 3.7% to $2.3385 on Friday and remained close to last week’s 11-month low, losing nearly 2% this week after plunging almost 20% the week prior.
Altcoins Track Bitcoin Lower
Broader altcoin markets followed Bitcoin’s decline, though prices stayed above last week’s crash levels.
Ethereum (ETH) fell 3.7% to $3,889, while Binance Coin (BNB) slipped 5.2% to $1,127.
Cardano (ADA) and Solana (SOL) both dropped more than 5%.
Among memecoins, Dogecoin (DOGE) slid 5.7%, and $TRUMP fell 3.7%, reflecting continued caution across the crypto landscape.
