Bitcoin prices extended their recent losses on Friday, October 17, dropping to their lowest value in more than three months as several factors combined to fuel continued declines. The world’s most prominent digital currency reached as little as $103,516.25, according to Coinbase data from TradingView. At this point, the cryptocurrency was down roughly 18% from the all-time high of $126,300 that it reached on October 6, additional Coinbase figures from TradingView reveal. The digital asset was also trading at its most depressed value since approximately June 23. When explaining bitcoin’s recent price movements, analysts highlighted a variety of bearish factors, emphasizing that the digital currency has encountered multiple challenges since reaching its zenith earlier this month. Trump Tariff Impact Several market observers pointed to the impact of tariff announcements made by President Donald Trump, as well as how they have impacted the broader global asset markets. Jacob Joseph, senior research analyst at CoinDesk Data, commented on these developments. MORE FOR YOU “Bitcoin and the broader digital asset market have largely trailed traditional financial assets in recent weeks, including gold and major equity indices,” he stated via email. “This underperformance coincides with increased macroeconomic uncertainty following President Trump’s announcement of potential new tariffs on China, which has led to reduced risk appetite across financial markets. ” Olivier Mammet, head of US OTC trading for Gemini, also commented on these duties, as well as how they have combined with heavy use of leverage to fuel downward price movement. “BTC is down about 16% from its peak around $126,000 last week. The initial drop was related to President Trump’s new tariffs on China that rattled the whole market beyond crypto, but the impact was mostly felt within the crypto space that had good leverage in it,” he stated. “We saw multiple waves of forced liquidations on Friday, with $19 billion worth of positions being liquidated across venues, which explains how we went from $126,000 to $110,000 on Friday alone,” Mammet continued. US Bank Challenges Another factor that has contributed to the recent weakness in the global asset markets, and also bitcoin prices, is uncertainty surrounding the status of certain U.S. banks, according to several analysts who contributed input for this article. Shares of several lending institutions, including Western Alliance Bancorp and Zions Bancorporation, tumbled on Thursday, October 16, after these companies announced financial challenges, according to Reuters. More specifically, Western Alliance revealed that it would take a $50 million loss as a result of two loans. Marc P. Bernegger, cofounder of crypto fund of funds AltAlpha Digital, spoke to these developments, stating through emailed commentary that “Reports of losses at US regional banks like Zions Bancorp and Western Alliance due to troubled loans have spilled over into broader financial markets, echoing 2023’s banking stresses and eroding confidence in assets like Bitcoin as well.” Mammet also weighed in on these developments, indicating that “Despite equities trading relatively well (SP500 only down 2-3% from the peak), other negative news such as the uncertainty surrounding regional US bank’s loans is continuing to weigh on the market.” Speculators Seize Control Short traders have seized control of the bitcoin markets this week, according to Julio Moreno, head of research for CryptoQuant. Short positions have been “dominating the futures market basically since October 14, and putting additional downward pressure on the price," he noted. The chart below illustrates these developments: Past that, “Spot demand continues to decline,” he added. The chart below shows the drop in bitcoin’s apparent demand. “Apparent demand is the part of the Bitcoin stock that is bought by new bitcoin holders,” Moreno clarified. “Here, the total stock is defined as Bitcoin that has not moved in 1 year or more,” he added. “When the total stock declines it is because there is new demand for Bitcoin and vice versa,” Moreno continued.