We don’t have many positive notes at the moment regarding the global market and even the largest banks are starting to have serious problems.
Bitcoin, the undisputed No. 1 in the crypto sector, is holding on at levels ranging between USD 18,900 and USD 20,400, doing up and down as only BTC can. The other cryptocurrencies have not lost their characteristic volatility, which is confirmed to be very difficult to manage for all crypto traders.
Returning to banks in serious difficulty, Credit Suisse and Deutsche Bank are the ones in the crosshairs of analysts. Analysts wait before making major decisions regarding their digital assets in their portfolios, perhaps the only solution to inflation and the collapse of the banking giants.
Credit Suisse fears a collapse
The request for extra capital and the addition of new capital from Credit Suisse follows the scandals and problems that have seen the institution as a protagonist from 2021 to the present.
On October 3, the Credit Suisse (CSGN) share price fell 11% as markets opened, continuing the 59% decline since early 2022. This accelerates a long and gradual period of decline for CSGN, which is now down 91% from its 2007 peak.
As if that weren’t enough, Ulrich Koerner, chief executive, has been accused of corporate espionage, economic losses and investment fund closures.
Deutsche Bank, financial difficulties also for the German giant
Another crisis is affecting one of the banking giants based in Germany, with other scandals and considerable economic losses.
Deutsche Bank staff have breached the bank’s core principles, making it easy for clients to steal millions of euros from the government’s revenue, which is condemning bankers for the largest tax fraud scheme to ever hit Europe.
The reduction in ATMs also drives customers away, forcing them to use other banks for higher fees. This has pushed the shares lower in the last 6 months, taking them to -31%.
Deutsche Bank may have to face one of those banking crises not seen since 2008, which could see the ECB’s commitment to save the German giant if necessary.
Investors choose cryptocurrencies
How is the crypto sector doing in this chaotic macro context?
During this time, it appears that the “safe haven” appellation is beginning to include more significant cryptocurrencies such as Bitcoin, an idea often questioned in the past.
Many Bitcoin purchases have increased, at the expense of the British currency, for example, with the British starting to buy more BTC out of distrust of the UK government. But not only!
Even cities like Lugano, with cryptocurrencies in strong growth, allow us to identify a trend in which investors seem to be increasingly interested in the sector, to the detriment of national currencies that seem to be in crisis by the sharp increase in interest rates and the danger that inflation represents.
The bank crisis: rebound or imminent collapse?
The banking crises and scandals accompanying the two banks make the matter very interesting for analysts and fans of the Web3 sector.
At the moment there are those who are betting on recovery and those who can believe that a new and worse crypto winter is upon us.
Today some cryptocurrencies (such as Bitcoin) seem not to have had excesses of volatility comparable to months ago, and could be able to benefit from any collapses of traditional banks. It is certainly not a clear picture, but cryptocurrencies seem to be able to offer a solution.
“Safe haven” or not? Bitcoin and gold, the solutions
However, it seems that cryptocurrencies could hide the solution to the problem. There has been a lot of discussion about whether digital currencies could be a safe haven, or rather that Bitcoin is.
Between supporters of this thesis and fierce opponents, today we know that between fiat currencies in difficulty with rising interest rates and inflation which dominates, there are not many other assets to trust.
Bitcoin & Co. could represent a deflationary solution like gold, managing to save the capital deposited in banks like Credit Suisse or Deutsche Bank, which, failing, could ruin many more people than Lehman did in 2008.