Key Points:
- The cryptocurrency market shows signs of a slight decline due to the unstable financial situation and monetary policies.
- Investors weigh in on Deutsche Bank’s bankruptcy contagion fear.
- The cost of insuring the debt of financial services giant Deutsche Bank soared to a four-year high, sending shares down 14%.
The entire crypto market price fell on Friday as investors faced the threat of US monetary policy and the fear of a Deutsche Bank crisis. It seems that the banking crisis has spread to European banks.
The largest cryptocurrency in the market, Bitcoin (BTC), has seen a 2.3% drop in the past 24 hours after peaking at $28,300. Ethereum (ETH) has also dropped below the $1,800 level. The altcoin and stablecoin markets also suffered the same fate due to the volatile economic situation.
In addition to the fear of the Fed’s continued tightening of monetary policies, the US banking crisis significantly affected the cryptocurrency market after lawmakers ordered the closure of three banks. This month, major crypto-friendly stores Silvergate, Silicon Valley, and Signature are based in the US.
The crisis did not stop in the United States but has spread to European countries. Large Swiss bank Credit Suisse also fell into trouble and decided to sell itself to USB Group for $3.2 billion a few days ago.
Yesterday, Deutsche Bank (Germany) reeled for most of the day after the financial services giant’s debt insurance costs soared to a four-year high, raising concerns once again about the health of the financial services giant strength in the banking industry.
Shares of Deutsche Bank (DB) fell 14% a point on Friday before closing down 3%. Shares of Deutsche Bank fell for the third day in a row and have lost more than a fifth of their value this month.
This is Germany’s largest commercial bank with about $1.4 trillion in assets and a profit of $6 billion by 2022
While Deutsche Bank shares led the way, central European banks such as Commerzbank, Credit Suisse, Societe Generale, and UBS also recorded a 5% drop.
Besides financial worries, investors also need to consider many legal issues, including recent regulatory enforcement issues, including the Securities and Exchange Commission (SEC) warning against told Coinbase that the agency is pursuing an enforcement action against the exchange for possible securities violations.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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