Investors Brace for Fallout as Credit Suisse Shares Plunge, Bitcoin Price on the Line
Credit Suisse Group’s largest shareholder, Saudi National Bank (SNB), has announced that it will not purchase additional shares in the Swiss bank on regulatory grounds. SNB Chairman Ammar Al Khudairy cited the 10% share ownership limit as the reason for not increasing its stake.
Credit Suisse has been struggling to regain investor confidence after the recent crisis, and its shares fell by a fifth to record lows. This downturn came after the collapse of Silicon Valley Bank caused market fallout, leading to concerns about the impact on Bitcoin’s price.
A Series of Scandals
Credit Suisse has been facing difficulties due to a series of scandals that have led to the investor and client distrust. The bank’s customer outflows in the fourth quarter of 2022 amounted to over $120 billion.
Investors Brace for Fallout as Credit Suisse Shares Plunge, Bitcoin Price on the Line Furthermore, in its annual report for 2022, the bank identified “material weaknesses” in its financial reporting controls and has yet to stem customer outflows. This lack of confidence is a significant reason for the bank’s ongoing troubles.
Uncertain Future for Credit Suisse
The recent drop in Credit Suisse shares is a sign of a larger problem, with an average decline of 10% in bank stocks over a single day. Experts suggest that the stock’s downturn is an indication of a significant issue in the financial sector. The recent collapse of three cryptocurrency-friendly banks has caused concern for the digital asset industry. This situation raises questions about the impact on the wider market and the future of Credit Suisse.
Bitcoin Stands Strong
Investors are keeping a close watch on Bitcoin’s price, given the market turbulence and the recent collapses of cryptocurrency-friendly banks. Though the market has been volatile, with Bitcoin’s price briefly dropping below $20K due to collapsing traditional markets, the digital asset remains relatively stable.
The current price for Bitcoin is $24,919, which is up by 12% over the past seven days. It remains to be seen what impact the Credit Suisse crisis will have on the cryptocurrency market, particularly on Bitcoin’s price.