Tuesday 04 October 2022 ▪ 7:00 am ▪
5
min read – with
The banking organization Credit Suisse is going through a rather sensitive period with bankruptcy on the horizon. The Swiss financial giant, for example, is planning a final renovation to try to save the furniture. To do this, he recently asked his clients to give him 100 days to arrange a turnaround. In more than 13 years, the cost of insuring the organization’s bonds against default has not risen by 15% as it is now. A configuration that reminds us of the head of the Lehman bank and its historic bankruptcy in 2008. This embarrassing situation strengthens the situation of Bitcoin (BTC), which some consider a safe haven currency like gold.
Crédit Suisse and Deutsche Bank in the footsteps of the Lehman brothers
On September 15, 2008, the financial giant Lehman went bankrupt and left a deficit $600 billion. A situation that has never been seen before, because it was the first of a large traditional bank, which is believed to be eternal to go bankrupt. Fall that gave Wall Streetthem financial markets and the depressed global economy.
However, the bankruptcy of Lehman gave more weight to decentralized finance (DeFi), with the Bitcoin launched in progress. So investors turned to bitcoin as a safe haven currency to avoid losing everything in traditional banks. With Ulrich’s recent announcement Koernermanaging director of Credit Suisse, which provides for a recovery within 100 days, one wonders if the Lehman story isn’t about to happen again. The Swiss banking organization is going through a critical period since the default swaps increased by 15%. The largest figure since the bankruptcy of the financial baobab Lehman in September 2008.
The IS Deutsche Bank also going through a similar period. The most worrying thing is still the asset base of the two European banking institutions. She is less than 2.5 billion dollars and 4 times less than that of Lehman at the time of its crisis. If these banks fail, the crypto industry in general and Bitcoin in particular will rise in rank. With a current capitalization of 367 billion and an estimated price of 19,200 dollars, the king said Cryptos show strength.
The comparison between Bitcoin and Gold is growing
Crypto industry players wouldn’t take a dim view of the the collapse of traditional banks. We remember, in 2017, when bitcoin was trading for 7,000 dollars, the Boss of Credit Suisse at the time, Tidjane Thiam he had reservations. He asked the king to be cryptos “bulb”.
In response to the news of Credit Suisse, founder of Digital Currency Group Barry Silbert Said : “Bitcoin is poised to become a safe haven asset. There’s nowhere else to hide.” A statement that made people react Peter SchiffBitcoin critic, who suggests instead of gold: “Where are you hiding from The Grayscale Bitcoin Trust? That’s down 80%. Why would Bitcoin suddenly become a safe haven asset if it was never a safe haven in the past? If you want proven haven, ditch #Bitcoin and buy #Gold”he finished.
Instead of throwing gold against bitcoin, Bloomberg strategist Mike McGlone thinks there is a high road ahead for both assets. “Most central banks in history raised rates as the world was heading into recession. A decline in commodities and risky asset prices could be the only way out with deflationary implications, which would support the price of gold and its digital version, Bitcoin,” he declared.
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A doctoral student in financial law and an experienced SEO web editor, Cédrick Aimé is passionate about cryptocurrencies, trading, etc. He naturally participates thanks to his articles in the daily blockchain revolution for a better democratization of DeFi.
