Crypto markets tumble amid US regional bank stress, prolonged government shutdown

The crypto market experienced a sharp sell-off, with total capitalization falling 6%, as investor fears intensified over renewed stress in US regional banks and a prolonged government shutdown entering its third week. Bitcoin dropped over $5,000 in a few hours, falling from nearly $109,000 to $103,500 before slightly recovering, while major altcoins like Ethereum and XRP fell around 6%. This decline was fueled by disclosures of substantial loan losses and potential fraud at institutions like Zions Bancorporation and Western Alliance, rattling confidence and prompting a flight to traditional safe-haven assets like gold. While experts suggest the situation has not yet reached the scale of the March 2023 Silicon Valley Bank collapse, analysts warn that fears of a wider credit crunch could escalate. BitMEX co-founder Arthur Hayes viewed the weakness as a buying opportunity, suggesting investors prepare for a potential 2023-style bailout if the banking wobble escalates into a crisis.

(Source：Crypto Briefing)