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Bitcoin slides below $24.5k as European Banking woes spook investors
March 16, 2023
Bitcoin slid below $24,500 as investors weighed a potential European banking meltdown triggered by concerns about often-embattled Credit Suisse.
The largest cryptocurrency by market capitalization dropped to $23,946 at one point before regaining ground to recently trade at $24,502, roughly flat over the 24 hours. But that was still well off BTC’s highs of the previous day when it soared past $26,000 after the release of a mildly upbeat consumer price index (CPI) inflation data for February.
The 6% CPI improved on the previous month’s reading and offered investors looking for more monetary policy dovishness hope the U.S. Federal Reserve would at least temporarily stop its recent diet of interest rate hikes.
Shares of the Swiss banking giant Credit Suisse (CS), which has been rocked by scandals over the past year and posted losses for five consecutive quarters, tanked on Wednesday after the bank’s largest investor, Saudi National Bank, said it wouldn’t invest capital beyond the $1.5 billion it sank into the bank last year. Saudi National Bank owns a stake of up to 9.9%.
The Swiss National Bank seemed to at least temporarily halt the damage after announcing it would provide CS with liquidity “if necessary,” and rejecting the notion that contagion tied to the failure of two, large U.S. regional banks over the past week had spread overseas.
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