Swiss bank Credit Suisse has been bought by UBS for CHF 76 per share, totalling CHF 3 billion ($3.3bn), against shareholders’ will, despite ongoing concerns about its financial stability. The Swiss National Bank has pledged a loan of up to CHF 100 billion to support the takeover, while the government has agreed to take on losses of up to CHF 9 billion from certain assets over a present threshold to reduce any risks to UBS. This follows reports Credit Suisse may have been at risk of going bankrupt.
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UBS to Buy Credit Suisse Against Shareholders’ Will: What Does this Mean for Crypto?
Credit Suisse’s Buyout Controversy
On Sunday, Credit Suisse announced that it is being bought out by UBS against shareholders’ will, amidst reports that the Swiss bank was at risk of going bankrupt. The government allegedly stepped in to help UBS by bypassing its own laws to allow the takeover, selling Credit Suisse for a fraction of its usual value on the open market. The Swiss National Bank also pledged a $100 billion liquidity line to UBS and granted a guarantee to assume losses up to $10 billion from certain assets over a present threshold.
Crypto Market’s Response to the News
The news of Credit Suisse’s buyout has caused a stir in the crypto market, which has seen Bitcoin surge up to $28,400 alongside a rise in other cryptos. Bitcoin dominance has also gone up from 42.8% to 47.3% in the last couple of days, with experts predicting that it could rise even higher if the market pulls back.
Investment Outlook in Crypto
Experts advise investors to tread cautiously in the crypto market despite the recent bullish tendencies, citing concerns over market volatility and potential risks associated with market movements. While some investors still believe that cryptos are a worthy addition to their investment portfolios, others prefer to sit on the sidelines and watch how the market plays out. The coming weeks are likely to be crucial in shaping investors’ perspectives on crypto as the market continues to respond to recent events.
