Bitcoin (BTC) remained stable at around $105,000 on Friday as recovering U.S. bank stocks and easing political tensions helped improve overall market sentiment. The cryptocurrency’s strong performance comes after a volatile week, with analysts pointing to renewed investor confidence in both traditional and digital assets.
Market sentiment improves after Trump truce
Investor sentiment received a boost after former U.S. President Donald Trump reportedly agreed to a temporary truce in a political dispute that had unsettled markets earlier in the week. The announcement eased fears of prolonged uncertainty in Washington, helping to calm equity markets and indirectly supporting risk assets like Bitcoin.
“The truce has created a more stable short-term outlook, which is exactly what investors needed to regain confidence,” one market strategist said. Political stability often helps reduce market volatility, allowing investors to return to assets they view as growth opportunities.
US banking stocks rebound
U.S. banking stocks, which had experienced heavy selling pressure over the past few sessions, also rebounded strongly. Major banks posted modest gains as investor concerns over liquidity and credit risks eased. This recovery helped lift broader market sentiment and provided a more favorable environment for risk assets.
Historically, Bitcoin has shown a tendency to move in tandem with overall market risk appetite. When investors feel more confident, they often increase their exposure to alternative assets such as Bitcoin. “The rebound in bank stocks shows that fear levels are coming down,” an analyst noted. “That’s good news for crypto.”
Bitcoin shows resilience at $105K
Bitcoin’s ability to hold above the $105,000 mark is seen as a sign of strength by many market observers. The level has acted as a key psychological and technical support, attracting buyers during short-term dips.
Trading activity remained steady, and market data showed a healthy balance between buyers and sellers. This stability has reassured traders who were concerned about deeper corrections earlier in the week.
“BTC holding at $105K is impressive given recent volatility,” said a crypto market analyst. “It suggests strong buying interest and confidence in the asset’s longer-term outlook.”
Broader crypto market sees slight gains
Other major cryptocurrencies also saw modest increases alongside Bitcoin. Ethereum (ETH) traded slightly higher, while altcoins such as Solana (SOL) and XRP showed minor positive movements. Analysts believe that if Bitcoin remains stable, it could provide support for broader crypto market momentum in the coming days.
Institutional interest also remains strong, with inflows into crypto investment products continuing to rise. This trend has helped strengthen the market’s foundation.
Outlook remains cautiously optimistic
While the current sentiment is more positive, analysts caution that global markets remain sensitive to economic data and political developments. Any sudden changes in interest rate expectations or geopolitical tensions could quickly shift investor mood.
For now, Bitcoin’s resilience above $105K, combined with improving equity markets and a temporary political truce, has created a more favorable short-term environment for risk assets. If these conditions hold, analysts expect Bitcoin to remain in a stable to slightly bullish range in the near future.
“Market confidence is fragile but improving,” one strategist said. “As long as sentiment stays positive, Bitcoin is likely to hold its ground.”
