Why is this Distressing News from Deutsche Bank a Good Signal for Bitcoin?

bitcoin traders expect a bounce
Image Source: Shutterstock

Why is this Distressing News from Deutsche Bank a Good Signal for Bitcoin?

On Sunday, Deutsche Bank announced that it would soon make significant cutbacks to its investment bank unit. Reportedly, about 20000 employees could lose their jobs in their process. On Friday, 5th July, the head of Investment Banking, Garth Ritchie, also announced his departure from the firm.

New York and London offices of the largest Germany’s business Bank is expected to experience the majority of the cut-backs.

The current economic situation is upsetting. Europe is facing significant scale problems. Nevertheless, a distressing economy could be a good signal for unrelated assets like Bitcoin and Gold. Anthony Pompliano, the founder of Morgan Creek Digital and a popular crypto-influencer tweeted,

Deutsche Bank plans to fire almost 20,000 employees. Bitcoin has no employees to fire. DB is built for the old world. And Bitcoin is built for the new world.

In most cases, correlation does not mean causation. Nevertheless, the declining currencies of China, the US, the UK, and high inflation characteristics in countries like Turkey, Brazil, and Venezuela is perceived to have a positive effect on Bitcoin.

Also Read: Nouriel Roubini Threatens to Sue BitMEX CEO Over Censoring the Debate Tapes

Moreover, the economic meltdown which could be dubbed as heresy spread by Bitcoin investors. However, even critics of Bitcoin like Nouriel Roubini has indicated the adverse financial condition of the world. Mati Greenspan, Senior Market Analyst at eToro also tweeted about the Deutsche bank cutbacks,

The old financial system is dying a slow death. ☠️⚰️ Let’s hope the new one is brighter. 🌞🌈

The low-interest rates from the Central Banks are causing the investment banks reduced profitability. Mati cited that the return at investments is currently <2%. Moreover, while this hardy has a direct correlation with Bitcoin’s positive growth directly, the failure of this economic system could lead to a possibility where Bitcoin’s protocol and limited supply will limit the role of the banks.

Leading Bitcoin proponents, VanEck CEO, Gabour Gurbacs and Whalepanda also commented on the news.

gabor gubacs whalepanda
Comments on the News (Source)

Also Read: How Cryptocurrency Fits into the Currency War Signaled by Donald Trump?

Furthermore, Christine Lagarde, the former IMF chief who has now been appointed as the leader of the European Central Bank (ECB) had also suggested how cryptocurrency is shaking the world economy. She emphasized that the cryptocurrency is attempting to transform the digital the global banking system and not in an adverse way.

The price of Bitcoin at 3: 30 hours UTC on 8th July 2019 is 11, 410. It is trading 1.82% higher on a daily scale.

Do role do you think Bitcoin will play in the next financial crisis? Please share your views with us. 

Summary
Why is this Distressing News from Deutsche Bank a Good Signal for Bitcoin?
Article Name
Why is this Distressing News from Deutsche Bank a Good Signal for Bitcoin?
Description
On Sunday, Deutsche Bank announced that it would soon make significant cutbacks to its investment bank unit. Reportedly, about 20000 employees could lose their jobs in their process. On Friday, 5th July, the head of Investment Banking, Garth Ritchie, also announced his departure from the firm. 
Author
Publisher Name
CoinGape
Publisher Logo
Coingape is committed to following the highest standards of journalism, and therefore, it abides by a strict editorial policy. While CoinGape takes all the measures to ensure that the facts presented in its news articles are accurate.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Author: Nivesh Rustgi

Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com

Post your comment...
Nivesh Rustgi 677 Articles

Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com

Follow Nivesh @