Bitcoin fell in price to $105k as US bank stocks tumble

Bitcoin has fallen below $106,000 for the first time since June, its price fluctuating around the $105,000 mark and at moments falling below it. The total capitalization of the crypto market has dropped by $600 billion in just over a week, Forbes calculates. Traders fear that the current decline could turn into a major collapse after bitcoin's record high of $126,000 earlier this month, the publication writes.

The crypto market has reacted sharply to the fall in the shares of regional banks in the United States, following the scenario of March 2023, Trading View believes . At that time, the collapse of the banking sector provoked a short-term fall in cryptocurrencies - bitcoin rate fell below $20,000, but this was followed by a rapid rebound, the publication recalls. "In March 2023, the shares of regional banks collapsed, the crisis seems to have been "contained", but in essence nothing has changed," describes the situation analytical resource The Kobeissi Letter on social network X.

Shares of Zions and Western Alliance banks collapsed 13.1% and 10.8%, respectively, in trading Thursday. Zions announced it would write off $50 million of troubled borrowers' debts among businesses in the third quarter. And Western Alliance accused one of its borrowers of fraud. The banking industry also remains under pressure amid the recent bankruptcies of auto lender Tricolor Holdings and auto parts maker First Brands, Barron's explains. Shares of Jefferies, which is affiliated with First Brands, fell 10.6% Thursday and have lost 25% since the beginning of October.

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