The cryptocurrency market extended its losses on Thursday, as Bitcoin’s renewed sell-off triggered a new wave of liquidations, pushing major altcoins to multi-week lows. The downturn was led by Bitcoin which fell 5.6% over the past 24 hours to an intraday low of $104,853, according to CoinGecko data. The slide dragged the total crypto market capitalization down by 5.9% to $3.64 trillion, its lowest level since July, according to CoinGecko data.
The sell-off appears to have been sparked by a flight to safety amid growing fears over the stability of the U.S. regional banking sector, Derek Lim, head of research at market-making firm Caladan, told Decrypt. He explained that the panic originated from traditional finance, where reports of loan book issues at lenders, including Zions Bancorporation and Western Alliance, triggered a sharp selloff in bank shares, which subsequently bled into risk assets, Lim explained.
“As concerns spread through the financial sector, risk appetite weakened pretty severely across all markets,” Lim said. “Naturally, crypto dropped as traders initiated a flight to safety.” Altcoins, still fragile from the previous week’s flash crash, suffered significant corrections. Ethereum dropped by 7.4% on the day, while XRP, Solana, Tron, Dogec
