Bitcoin fell on Friday, heading for a second consecutive weekly loss, as risk appetite in cryptocurrency markets came under renewed pressure from escalating trade tensions between the United States and China and growing concerns over credit risks.

Cryptocurrencies tracked global market declines, with Wall Street and most international equities falling amid rising economic uncertainty, while the ongoing US government shutdown continued to weigh on sentiment — particularly after delays in the release of key economic indicators.

Bitcoin dropped 1.9% to 108,830.2 dollars as of 1:37 a.m. Eastern Time (05:37 GMT), putting the world’s largest cryptocurrency on track for a weekly loss of about 1.7% after plunging 10% the previous week.

The coin has struggled to recover from last week’s sudden crash, which wiped out nearly half a trillion dollars in total crypto market capitalization, sending Bitcoin to as low as 103,000 dollars. The selloff was triggered by intensifying US-China trade tensions and a record 16 billion dollars in long-position liquidations.

Although Bitcoin managed to recover part of its losses this week on the back of dovish signals from the Federal Reserve, it remains well below its early October all-time highs above 126,000 dollars.

Risk aversion intensified further this week as worries grew over credit risks among US regional banks, leading to sharp declines in bank stocks on Thursday that spilled over into global markets.

Ripple Seeks to Raise $1 Billion to Repurchase XRP Tokens

Bloomberg reported on Friday that Ripple Labs — the issuer of the XRP token — is leading efforts to raise 1 billion dollars to establish a reserve of its cryptocurrency.

While such moves typically boost token prices, XRP showed little positive reaction, falling 3.7% to 2.3385 dollars and remaining near its 11-month low reached during last week’s market crash.

Bloomberg said the funding would be conducted through a special purpose acquisition company (SPAC), with Ripple contributing a portion of its existing XRP reserves to the new fund.

Over the week, XRP was down about 2% after sliding nearly 19.8% the previous week.

Oil prices fell on Friday, heading for a weekly loss of nearly 3%, after the International Energy Agency (IEA) projected an increase in global supply surpluses over the coming years, while US President Donald Trump and Russian President Vladimir Putin agreed to hold a new summit to discuss the war in Ukraine.

Brent crude futures fell by 44 cents, or 0.7%, to 60.62 dollars a barrel, while US West Texas Intermediate (WTI) crude declined by a similar amount to 57.02 dollars a barrel, down 0.8%.

The decline came after Trump and Putin agreed on Thursday to hold a new summit in Budapest within the next two weeks, a surprise development that coincided with Ukrainian President Volodymyr Zelensky’s visit to the White House on Friday to request additional military support — including long-range US Tomahawk missiles — as Washington presses India and China to halt imports of Russian oil.

Tamas Varga, analyst at PVM, said the diplomatic move may signal a possible softening of the US stance toward Russia. “If that happens, it would likely lead to lower oil prices,” he added.

Varga explained that previous drone attacks by Ukraine on Russian refineries and threats of secondary sanctions on buyers of Russian oil, such as India and China, had supported prices, “but that could now change.”

Weekly losses were also driven by escalating trade tensions between the United States and China, which have heightened fears of a global economic slowdown and weaker energy demand.

“These developments completely undermine confidence,” said Jorge Montepeque, managing director at Onyx Capital Group. “I expect the US economy to feel the impact of these pressures very quickly.”

Further pressure came after the IEA’s latest report projected a growing oil supply surplus by 2026.

In the United States, data from the Energy Information Administration (EIA) on Thursday showed that crude inventories rose by 3.5 million barrels to 423.8 million barrels last week, compared with analysts’ expectations for an increase of just 288,000 barrels, according to a Reuters survey.

The larger-than-expected inventory build was attributed to lower refinery utilization as plants enter the fall maintenance season. The data also showed US crude production rising to a record 13.636 million barrels per day.

In the previous session, Brent crude closed down 1.37%, while WTI fell 1.39%, both hitting their lowest levels since May 5.

The US dollar was on track Friday to record its worst weekly performance since July, as escalating trade tensions between the United States and China, along with signs of weakness among US regional banks, drove investors toward safe-haven assets such as the Swiss franc and the Japanese yen.

Further signs of softness in the US economy have emerged, while the ongoing federal government shutdown has delayed the release of key economic data, leaving investors less certain about the true state of economic conditions.

The Swiss franc reached its strongest level in a month, while the yen also strengthened, partly supported by comments from Bank of Japan Governor Kazuo Ueda, who suggested that an interest rate hike could take place this month.

Dylan Wu, research analyst at Pepperstone, said that rising concerns over the trade war, the Federal Reserve’s independence, and the government shutdown are making the dollar vulnerable to what is known as the “debasement trade,” where investors turn to assets whose value cannot easily be devalued, such as gold and cryptocurrencies.

“It’s really hard to find a bullish scenario for the dollar index,” Wu added. “Rather than betting on a single currency, investors are shifting toward gold, digital assets, and other hedges against risk.”

The Swiss franc was among the best performers against the dollar, which fell 0.4% to 0.7898. The dollar index — which measures the greenback’s performance against six major currencies — was heading for a weekly decline of 0.7%, its biggest since late July.

The dollar also fell 0.39% against the yen to 149.825, slipping below the 150 mark for the first time since October 6.

Bank of Japan Governor Ueda said during a visit to Washington on Thursday that the central bank is ready to raise its key interest rate if the likelihood of achieving its growth and inflation forecasts increases.

The yen’s rise came despite its defensive position since the election of Sanae Takaichi — known for her dovish economic stance — as leader of the ruling Liberal Democratic Party earlier this month. However, a parliamentary vote to confirm her as prime minister was postponed due to disagreements within the ruling coalition.

Reuters reported Friday that Japan’s House of Representatives Steering Committee approved holding the prime ministerial vote on October 21.

Fiona Cincotta, senior analyst at City Index, said, “Rising concerns over the US-China trade war and anxiety around regional US banks are reminding markets that things may not be as rosy as investors once thought.”

“There is clearly a shift toward safe-haven assets,” she added. “In equities, S&P 500 futures are down 1.4%, gold is trading near record highs, and the Swiss franc is performing strongly — all signs of a broader move toward risk aversion.”

In other currency markets, the euro rose 0.1% to 1.1698 dollars, while the British pound slipped 0.2% to 1.341 dollars.

On the monetary policy front, Federal Reserve Governor Christopher Waller said he supports another rate cut at the upcoming Fed meeting, citing mixed readings on the labor market.

Meanwhile, Stephen Miran — the newest member of the Federal Reserve Board of Governors and an economic adviser to President Donald Trump — renewed his call for a more aggressive series of rate cuts in upcoming meetings than some of his colleagues prefer.

Miran’s temporary term is set to expire at the end of January, while Fed Governor Lisa Cook continues in her role as the courts consider legal challenges to Trump’s attempt to remove her.

The Federal Reserve’s Beige Book offered limited support for maintaining current interest rates, noting emerging signs of economic weakness, including an uptick in layoffs and reduced spending among middle- and lower-income households.

Gold prices rose in European trading on Friday, extending gains for the sixth consecutive session and continuing to set new record highs as they came close to trading above the 4,400-dollar-per-ounce mark for the first time in history, poised to post their biggest weekly gain in five years.

The rally came amid strong safe-haven demand and support from a weaker US dollar against a basket of global currencies, as markets priced in a high probability of Federal Reserve rate cuts in October and December.

Price Overview

• Gold prices rose 1.2% to 4,379.65 dollars per ounce — the highest level ever — from an opening of 4,328.19 dollars, after touching a low of 4,278.95 dollars.

• At Thursday’s settlement, gold gained 2.85%, marking its fifth consecutive daily increase and setting a new record above 4,300 dollars per ounce amid continued safe-haven buying.

Weekly Performance

Throughout the week, which officially concludes at today’s close, gold prices have risen about 8.5%, on track for a ninth straight weekly gain — the longest winning streak since June 2020 — and the biggest weekly advance since March 2020.

US Dollar

The US Dollar Index fell 0.3% on Friday, extending losses for the fourth consecutive session to a two-week low of 98.03 points, reflecting broad weakness in the greenback against major and minor currencies.

As is well known, a weaker dollar makes dollar-priced gold more attractive to buyers holding other currencies.

The decline came as the dollar was weighed down by recent dovish comments from Federal Reserve officials and renewed trade tensions between the United States and China.

US officials on Wednesday criticized China’s expanding export controls on rare-earth metals, calling them a threat to global supply chains.

A Treasury Department official said the ongoing two-week US government shutdown could cost the economy up to 15 billion dollars per week in lost output.

US Interest Rates

• Jerome Powell said on Tuesday that the labor market remains stagnant, with low levels of hiring and layoffs, and that the absence of official data due to the government shutdown has not prevented policymakers from assessing the economic outlook — at least for now.

• Philadelphia Fed President Anna Paulson stated that growing risks in the labor market strengthen the case for additional rate cuts.

• Fed Governor Christopher Waller said he supports another rate cut at the upcoming meeting, citing mixed readings from labor-market data.

• According to CME Group’s FedWatch Tool, markets currently price in a 99% probability of a 25-basis-point rate cut at the October meeting, while the probability of no change stands at 1%.

• Investors continue to monitor Fed officials’ comments closely, as key economic data releases remain delayed due to the government shutdown.

Gold Outlook

Tim Waterer, chief market analyst at KCM Trade, said gold could reach a target of 4,500 dollars per ounce “perhaps sooner than expected,” though much depends on how long concerns over US-China trade tensions and the government shutdown persist.

Waterer added that mounting credit-risk concerns among US regional banks have given traders additional reasons to buy gold.

Analysts at Bank of America and Société Générale now expect gold to reach 5,000 dollars per ounce in 2026.

SPDR Fund

Holdings of the SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose by 12.02 metric tons on Thursday, marking the fifth consecutive daily increase and bringing total holdings to 1,034.62 metric tons — the highest level since July 1, 2022.