Financial giant Credit Suisse is on the brink of collapse as the bitcoin banking narrative takes hold
A giant bank is now on the brink as fears about the security of the modern banking system spread around the world.
Credit Suisse shares have fallen 25% in the last 24 hours after it was announced that its largest shareholder, the Saudi National Bank, decided “no way” to prop up the ailing bank and inject more capital.
Credit Suisse shares plunged so far and so fast that it triggered an automatic pause in trading in the Swiss market, UPI reports.
The sharp drop follows revelations that the bank’s customers began withdrawing cash in significantly higher amounts late last year.
The bank also expects its profits to be badly hit after one of its clients defaulted on margin calls.
The news follows the federal shutdown of two major regional banks in the US – Silicon Valley Bank and Signature Bank.
Amid these closures, the Biden administration pledged that all depositors would be healthy and announced the creation of a new facility to lend money to banks that need more capital to stay afloat.
The banking crisis has rocketed the price of Bitcoin (BTC), which was created anonymously as an alternative to the banking system after the 2008 financial crisis.
And the narrative that Bitcoin offers an antidote to traditional banking seems to be gaining traction, according to Google Trends.
Global searches for the term “bitcoin bank” have exploded over the past week as the price of BTC jumped from a low of $19,662 on Friday to a high of $26,111 on Tuesday.
Google trends
Bitcoin, in the form of the BTC digital asset, enables direct, instant and virtually free peer-to-peer transfers around the world.
Its code-based currency system is incapable of calling or calling for a bailout, instead relying on individuals around the world to run the network and support BTC with their own capital.
After hitting that yearly high, BTC is down to $24,260 at the time of publication, down 6.6% over the past 24 hours.
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