Germany’s Deutsche Bank takes a dip while Bitcoin goes uphill

Please fol­low and like us:
Pin Share

  • Deutsche Bank’s shares fell 14% cre­at­ing mar­ket pan­ic across Europe while BTC surged 40% since SVB collapse.
  • Ear­li­er this week, Germany’s Dwp­bank announced that it is going to offer Bit­coin trad­ing ser­vices to 1,200 of its affiliates.

Deutsche Bank AG’s shares fell as much as 14% on 24 March, mark­ing the bank’s third con­sec­u­tive day of loss­es. Its stock dropped as low as €7.95.

Despite recov­er­ing from its worst loss­es pre­vi­ous­ly, the bank closed more than 8% low­er at €8.54 on the same day.

Source: MarketWatch

Source: Mar­ket­Watch

Con­cerns about Germany’s largest lender rose days after Cred­it Suisse Group AG was forced into a takeover by its larg­er rival UBS Group AG. Fol­low­ing the fail­ure of Sil­i­con Val­ley Bank (SVB) in the U.S. ear­li­er this month, investors are hunt­ing across the globe for insti­tu­tions deemed vulnerable.

With major foot­prints in both Europe and the Unit­ed States, the Deutsche Bank is a sig­nif­i­cant play­er in the glob­al bank­ing sys­tem. It pro­vides lend­ing and oth­er ser­vices to a num­ber of multi­na­tion­al cor­po­ra­tions globally.

Ger­man Chan­cel­lor Olaf Scholz told reporters at an EU sum­mit in Brussels:

“Deutsche Bank has thor­ough­ly mod­ern­ized and reor­ga­nized its busi­ness mod­el and it is a very prof­itable bank. There is no rea­son what­so­ev­er to be concerned.”

Shares of oth­er Euro­pean banks also fell on 24 March, though not as much as Deutsche Bank. Anoth­er Ger­man bank Com­merzbank AG’s stock fell 6.5%; British bank Bar­clays PLC’s stock fell 5.8%; and the stock of France’s most valu­able bank BNP Paribas SA fell 5.27%.

Germany’s Dwpbank offers Bitcoin Trading Services

Ear­li­er this week, Germany’s Deutsche Wert­pa­pierSer­vice Bank (Dwp­bank) announced that it was devel­op­ing wpNex, a new plat­form that will offer Bit­coin (BTC) trad­ing to retail cus­tomers of all of its 1,200 affil­i­ates in the sec­ond half of this year.

It should be not­ed here that BTC’s price tum­bled when the SVB col­lapsed. But since then, its val­ue has surged by near­ly 40% and it doesn’t show any signs of slow­ing down for now. It was trad­ing at $27,443.03 at press time.

As con­cerns about the fail­ure of big banks across the globe increase, Bit­coin max­i­mal­ists have been under­lin­ing the sus­tained per­for­mance of BTC amidst the crisis.

The pro­po­nents of a decen­tral­ized bank­ing sys­tem have time and again sug­gest­ed that a trust­less finan­cial sys­tem is the only way for­ward for a sta­ble economy.

Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published.