Credit Suisse Failure Sparks Surge in Bitcoin and Ethereum Prices

The stock market has been hit hard by the recent failures of several major banks, including Silicon Valley Bank and Signature Bank. These failures have had a ripple effect across the global financial system, with investors and authorities scrambling to find a solution. However, the situation has only worsened with the failure of Credit Suisse, one of the world’s largest banks.

The inherent nature of the failure of Silicon Valley Bank and its effects on the stock market over the past week have not yet been solved. Investors and authorities have switched their attention from the United States to Europe. Credit Suisse led a selloff of bank shares after its largest shareholder ‘Saudi National Bank’ stated that it was unable to continue providing financial support due to regulatory limitations.

This led to a drastic drop in Credit Suisse’s shares, with the company losing as much as 30% of its value in just one day. The US Treasury is now working closely with its international counterparts to try and find a solution to the ongoing crisis. Credit Suisse has already taken “decisive action” by borrowing up to 50 billion Swiss francs ($54 billion) from the Swiss National Bank to boost its liquidity.

The chart depicting Credit Suisse Group AG’s stock performance over the last month, as provided by Google Finance.

The effects of these failures have also been felt in the cryptocurrency market. As traditional bank stocks continue to struggle, the global crypto industry is experiencing a surge in demand. The leading cryptocurrency trader and enthusiast, Lark Davis, tweeted about the situation, suggesting that investors should turn to Bitcoin and other cryptocurrencies as a safer investment option.

Indeed, the global crypto market cap has now regained its $1 trillion cap, with Bitcoin and Ethereum leading the charge. Bitcoin, in particular, has seen a significant surge in value, reaching its 9-month high of $26,500 on 14 March 2023. Ethereum has also seen gains, with the altcoin trading at $1,670, a 6-month high.

While the failures of major banks such as Silicon Valley Bank and Signature Bank have had a significant impact on the global financial system, the rise of cryptocurrencies such as Bitcoin and Ethereum may provide a safer investment option for those looking to protect their wealth. As the crisis continues to unfold, it remains to be seen how the stock and cryptocurrency markets will continue to react.

Read more:

Join us on Telegram

Follow us on Twitter

Follow us on Facebook

Follow us on Reddit

You might also like