Deutsche Bank crisis increases bitcoin (BTC) rates: Price can even increase more!

Deutsche Bank crisis increases bitcoin (BTC) rates: Price can even increase more!

Bitcoin-influenced banking industry: Deutsche Bank to lay off 18,000 people!

Bitcoin prices have risen after a plan announced by Deutsche Bank on Monday to terminate 20% of the workforce by 2022 and a decision to slow down the investment banking department. Is it a coincidence, or does the negative picture for traditional financial markets act as a market shield for Bitcoin?

Another ‘Lehman crisis’ approaching?

After the 2008 financial crisis, Deutsche Bank is undergoing the biggest financial restructuring. The former banking giant began this restructuring on Monday morning, reducing almost 20% of the workforce. At the end of this massive firing the bank will dismiss almost 18,000 employees. They gave up their equity and trade divisions.

This event may have a fluctuating effect on Germany and all of Europe

As in the recent crisis, Deutsche Bank confirmed that it would transfer its $ 90 billion derivative to a ‘bad bank’. This step is likely to strengthen the balance with the increasing failure of assets. The bank derivative is worth about $ 49 trillion and is about 10 times the total German income. The bank’s failure can have a fluctuating effect on the banking system, Germany and the whole of Europe, as Germany is the largest euro zone economy.

Deutsche Bank CEO: This restructuring is necessary and urgently needed!

Christian Sewing, CEO of Deutsche Bank, has made it clear that the need for dramatic staff cuts is urgent and is the first of its kind in the restructuring of the last 20 years. An anonymous London employee said:

People know the bank doesn’t do a good job. it’s not like a party, what’s happening at the bank is really sad, but i think that’s what is needed from the top management’s point of view and it’s going to be done.

The relationship between Bitcoin fluctuation and Deutsche Bank crisis

In the midst of ongoing global downturns in trade wars, Bitcoin was seen rising. The US-China issue has been confirmed by many for the rise in Bitcoin price. Bitcoin prices have increased by 10.8% in the last 24 hours following Deutsche Bank’s announcement, with prices exceeding $ 12,500.

The merger of these two events, the Bitcoin surge and the Deutsche bank crisis are taking us back to Bitcoin’s Satoshi Nakamoto genesis block. Banks behave like profit-making companies and are not motivated to provide consumer-centric services. Bitcoin, on the other hand, is a decentralized non-profit currency. Therefore, cryptocurrencies can be taken as a reliable alternative to fiat.

Analyst and expert opinions that the Deutsche Bank crisis will pump Bitcoin

In a tweet released on July 7, Anthony “Pomp” Pompliano, co-founder of Morgan Creek Digital Assets, interpreted this event as a strong justification for Bitcoin (BTC) adoption:

Deutsche Bank plans to fire about 20,000 employees. bitcoin has no employees. DB was built for the old world. bitcoin was built for the new world.

In his analysis of the bad banking sector, eToro analyst Mati Greenspan said that this move showed a broader policy failure in global monetary policy:

This is the effect of long-term zero interest policy.Central banks make it impossible for investment banks to make a profit. Even the most risky bonds around yield no more than 2%. How can they be expected to make money?

In particular, Jim Reid, CEO of Six Flags, said that central bank policies positively affected “alternative” currencies such as Bitcoin while hurting investment banks:

If the central banks are going to be so aggressive, alternative currencies will become a bit more attractive.

About Viktor Sokolov 163 Articles
Nerd, entrepreneur & coffee aficionado. Believes that blockchain infrastructure and bitcoin will be the money system of the coming decades. Trying to make visible what this means for technology, economy, companies and societies.

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