While Bitcoin surged the German Deutsche Bank is struggling
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While Bitcoin surged the German Deutsche Bank is struggling

written by John Murphy | March 27, 2023

The recent surge in Bitcoin prices stands in stark contrast to the ongoing issues of Deutsche Bank in Germany. For the third day in a row, the bank’s shares have continued to decline. By 24th March they’d dropped by 14%. with a stock price of €7.95.

KEY TAKEAWAYS

  • The collapse of major worldwide banks has also taken a toll on the German Deutsche Bank.
  • As the Deutsche Bank witnessed a drop in its stock prices, Bitcoin prices have surged up to 40% ever since.

The bank’s stock price continued to drop which raised concerns among investors. Despite recovering from the market drop, the stocked price still closed at an 8% low €8.54.

The affect of the collapse of Global Banking System

The collapse of the Banking systems in the U.S. has had an utterly negative effect on other international banks. So has the Deutsche Bank – the largest bank in Germany. After the failure of Silicon Valley Bank, Credit Suisse was taken by UBS Group, which raised concerns among the population regarding the banking system.

As Deutsche Bank is an important player in the global banking system and provides services to many multinational corporations worldwide.

The German Chancellor Olaf Scholz, at the EU summit, told the reporters that there is no reason to be concerned about the bank’s financial stability.

Because despite the recent events in the global banking industry. Bank has made significant changes to its business model and has modernized its operations, which has led to increased profitability.

Moreover, on 24 March, shares of several European banks, including Deutsche Bank, dropped. Banks such as Commerzbank, Barclays, and BNP Paribas saw their stock prices drop, while Deutsche Bank’s stock fell the most. However, none of the banks had as severe a decline in share prices as Deutsche Bank.

Bitcoin trading services are available at other bank

Another Deutsche Bank has now allowed the trading of Bitcoin. Germany’s Deutsche WertpapierService Bank (Dwpbank) has announced the development of wpNex. This will allow Bitcoin trading for retail customers of all its 1,200 affiliates in the second half of this year.

While Bitcoin’s value declined after the collapse of SVB earlier this month, it has since risen by almost 40% and is currently in the Bull run.

Even with all the global turmoil going on with the Banking systems, Bitcoin has been performing well through it all. Those who believe in a decentralized banking system. They are actually advocating for a trustless financial system as the best way to maintain a stable economy.