Bitcoin Rallies As UBS Group Acquires Troubled Lender Credit Suisse In $3.2 Billion Deal
Over the last weekend, Swiss regulators, the Swiss National Bank, and others have been working to broker a deal between the UBS Group and the troubled banking lender Credit Suisse. On Sunday evening, March 19, the deal finally came to fruition.
The UBS Group acquired the ailing competitor in a $3.25 billion deal as part of the emergency ordinance and to prevent financial instability. This is more than a 60% discount from the $8 billion valuations of Credit Suisse just two back on March 17. Speaking on the development, UBS Chairman Colm Kelleher said:
“This acquisition is attractive for UBS shareholders but, let us be clear, as far as Credit Suisse is concerned, this is an emergency rescue. We have structured a transaction which will preserve the value left in the business while limiting our downside exposure”.
The Swiss central bank stated that this takeover provides a solution to “secure financial stability and protect the Swiss economy in this exceptional situation”. This deal comes through as the central bank worked with the Swiss government, as well as the Swiss Financial Market Supervisory Authority.
As per UBS, the combined bank will have a total of $5 trillion in invested assets. To broker this deal, the Swiss authorities had to bend some regulations to bypass a shareholder vote. As per the Bloomberg report, the Swiss Central Bank has also agreed to provide $100 billion in liquidity to UBS.
Bitcoin Rallies After UBS-Credit Suisse Deal
Soon as the news of the UBS-Credit Suisse deal came out, Bitcoin (BTC) and the broader crypto market registered a strong rally. The BTC price surged all the way to $28,400 followed by a rally in the altcoins space as well. Ethereum (ETH) price too climbed past the $1,800 level on Sunday evening.
Bitcoin and the broader crypto market have delivered a strong performance amid the recent crisis in the global banking sector. Popular angel investor Balaji Srinivasan believes that the banking crisis will get worse and the Fed will resolve to money printing once again to prevent it. This could lead to a situation of hyperinflation and the BTC price could touch $1 million in the next 90 days.
- Just In: Hyperliquid Strategies Eyes $1B Capital Raise, Plans HYPE Token Accumulation
- Senators Reaffirm Commitment to Market Structure Bill After Meeting with Coinbase, Ripple
- How the Crypto Market Could React to the Next Fed Meeting on October 29?
- $1.68 Trillion T. Rowe Price Files for First Active Crypto ETF Holding BTC, ETH, SOL, and XRP
- Standard Chartered Predicts Bitcoin Could Drop Below $100K Amid U.S.–China Trade Tensions
- XRP Price Classical Pattern Points to a Rebound as XRPR ETF Hits $100M Milestone
- Chainlink Price Eyes $27 Rebound as Whales Accumulate 54M LINK
- Pi Network Price Wedge Signals a Rebound as Key Upgrades Raise Utility Hopes
- Solana Price Eyes $240 Recovery as Gemini Launches SOL-Reward Credit Card
- XRP Price Prediction Amid Evernorth’s $1B XRP Treasury Plan – Can XRP Hit $5?
- Ethereum Price Targets $8K Amid John Bollinger’s ‘W’ Bottom Signal and VanEck Staked ETF Filing
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
