Bitcoin is experiencing significant volatility as stress resurfaces in the US regional banking sector. Strike CEO Jack Mallers highlighted the situation, suggesting that Bitcoin is correctly anticipating a liquidity crisis, which could lead to increased BTC prices. Mallers noted that the Federal Reserve might need to inject liquidity to stabilize the financial system, potentially benefiting Bitcoin. Despite these predictions, Bitcoin's price fell to a four-month low of $103,850 on Friday, before recovering to $107,000 on Saturday. This drop comes amid broader market concerns following the decline in stocks of banks like Zions Bank and Western Alliance, which have reignited fears from the unresolved 2023 banking crisis. The situation underscores the ongoing vulnerability of the US banking system, which remains reliant on government support rather than robust financial practices.