More Banks in Trouble, Fed’s Latest Interest Rate Hike, and Bitcoin’s New 9-Month High: This Week’s Crypto Recap

• UBS agreed to purchase the struggling former giant Credit Suisse for $3.3 billion.
• Deutsche Bank’s stock plummeted this week.
• The Federal Reserve hiked the key interest rates by another 25 basis points.

UBS Acquires Credit Suisse

This week saw the crisis in banking expand to Europe, with two of its most prominent names facing significant problems. UBS agreed to purchase the struggling former giant Credit Suisse, for almost $3.3 billion – more than 60% less than what it was worth days ago.

Deutsche Bank Struggling

Deutsche Bank is the other name making headlines recently, as its stock price tumbled 10% daily on Friday and is down by over 25% in a month. The volatility continued in the following days due to speculation that Federal Reserve would adjust its interest rate policy. With so many banks struggling due to record-high rates, many experts expected the central bank to stop raising them or even start lowering them. However, that wasn’t the case as Fed hiked the key interest rates by another 25 basis points.

Bitcoin Reacts To News

The news triggered an immediate price drop for BTC and other risk-on assets. The largest cryptocurrency fell by $500 almost immediately after announcement but managed to regain some of those losses later on and stabilize around $27k level. The positive news about UBS acquisition drove bitcoin back up again and it reached a new nine-month high at almost $29k this weekend.

Market Volatility Expected To Continue

With so much going on a market volatility will remain elevated in upcoming weeks as market players try to assess how much damage has been done by recent events and how long it will take until we see any signs of recovery from affected banks and their stocks prices rebound again.