The banking organization Credit Suisse is going through a rather delicate period with bankruptcy in the line of sight. The Swiss financial giant, for example, plans to make a final overhaul to try to save the furniture. To do this, he recently asked his clients to give him 100 days to set up a turnaround. In more than 13 years, the cost of insuring the organization’s bonds against default has never jumped by 15% as it is currently. A configuration that reminds us of that of the Lehman bank and its historic bankruptcy in 2008. This embarrassing situation further strengthens the position of Bitcoin (BTC), which some call 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 of $600 billion. An unprecedented situation, because it was a first for a large traditional bank, which was believed to be eternal to go bankrupt. A fall that led Wall Streetthem financial markets and the global economy in dismay.
Nevertheless, the Lehman bankruptcy had given more weight to decentralized finance (DeFi), with the launch of Bitcoin in stride. Investors had thus turned to bitcoin as a safe haven currency to avoid losing everything in conventional banks. With Ulrich’s recent announcement Koernerthe general manager of the Swiss creditwhich provides for a recovery within 100 days, one wonders if the story of Lehman is not about to happen again. The Swiss banking organization is going through a rather critical period since the default swaps experienced a 15% increase. A record figure since the bankruptcy of the financial baobab Lehman in September 2008.
The Deutsche Bank is also going through a similar period. What is even more worrying is 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 of cryptos shows strength.
The Bitcoin and Gold comparison is gaining momentum
Crypto industry players would not take a dim view of the fall of traditional banks. We remember that in 2017, when bitcoin was trading for 7,000 dollars, the boss of Credit Suisse at the time, Tidjane Thiam had reservations. He had called the king of cryptos to be ” a bubble “.
In response to Credit Suisse news, the founder of Digital Currency Group Barry Silbert stated that : “bitcoin is poised to become the safe-haven asset. Nowhere else to hide.” A statement that made people react Peter Schiffa critic of Bitcoin, who advocates instead for 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 has never been a safe haven in the past? If you want a proven haven, ditch #Bitcoin and buy #Gold”he concluded.
Instead of pitting gold against bitcoin, Bloomberg strategist Mike McGlone thinks the two assets have a high road ahead of them to shine. “Most central banks in history raised rates as the world tipped into recession. Falling commodity and risky asset prices could be the only way out with deflationary implications, which should support the price of gold and its digital version, Bitcoin,” did he declare.
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