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Credit Suisse Group AG, a global investment bank and financial services company with its headquarters in Switzerland, appears to have been affected by the bank crisis as it spreads, which could mean more gains for Bitcoin and the cryptocurrency market. Shares of the bank fell by almost 25% over the course of the week.
This decline occurred after Saudi National Bank (SNB), the bank’s largest shareholder, purportedly stated that it would no longer be able to sustain Credit Suisse. The bank declared it would “no longer purchase further shares in the Swiss bank on regulatory concerns,” according to Reuters, citing an SNB statement.
The latest Saudi National Bank withdrawal of assistance for the troubled Credit Suisse has sparked a number of theories about whether this would ultimately result in the bank’s demise. SNB now owns a large 9.88% stake in Credit Suisse. Ammar Al Khudairy, head of the SNB, told Reuters that regulatory considerations prevented the bank from expanding beyond 10%.
On March 15, after the disclosure, shares of Credit Suisse fell 24%. Since Silicon Valley Bank’s demise, shares of Credit Suisse have been on a downturn; their current decline due to SNB support removal has caused them to hit a new record low, with a value of $2.10 at the time of writing.
As of last year, after acquiring 10% of the company’s equity, SNB has pledged to investing $1.5 billion in Credit Suisse. A significant amount of money was withdrawn from the financial institution as a result of the faltering bank’s most recent huge dump, which occurred just months after the publication of its 2022 annual report.
With the recent failure of three large banks in the United States in the previous week, experts have warned that the bank may finally fail even if the firm has continued to seek financial aid after observing a reduction in consumer activity.
As the previous Bitcoin (BTC) rise was attributed to the failure of well-known banks, there has been discussion within the crypto community on whether the failure of another large bank, like Credit Suisse, may once again cause the cryptocurrency to continue on a positive trajectory.
After the collapse of three significant US banks last week—Silvergate, Signature Bank, and Silicon Valley—many investors in the financial industry have looked for alternate sources of wealth. As of now, digital assets like Bitcoin have shown to be the greatest choice. Prices have increased as a result of the latter.
As a result, the market as a whole and Bitcoin entered a brief positive phase. In addition, the Bitcoin price chart shows that following the last gain, there may be another increase in the near future.
Recent developments seem to portend terrible news for the world economy, but Bitcoin and the cryptocurrency market in general have profited. The ongoing decline of banks might prepare Bitcoin and the rest of the crypto market for another boom as the store of value narrative re-gains traction as an enticing alternative to the fiat system.
