The pressure is building for Deutsche Bank.
Germany’s largest and most financially leveraged bank continues to see its stock price languish as other firms distance themselves from the beleaguered financial institution.
Indications that the bank may pay billions of dollars to the US government in order to settle charges related to mortgage lending practices have sent markets reeling amidst an environment already on the edge.
Should the bank fail, it could have devastating implications for the financial services industry.
And, since market participants have often flocked to bitcoin in times of market distress, turmoil of this magnitude could prove highly bullish for the digital currency.
“The capital markets have awakened to bitcoin as a disaster hedge,” analyst Chris Burniske told CoinDesk. The digital currency doesn’t correlate with other asset classes, an aspect that may make it more attractive in times of uncertainty, said Burniske, blockchain products lead for investment manager ARK Invest.
“Depending on how people feel about Deutsche Bank’s future prospects, they may choose to hedge themselves from the more traditional markets by using bitcoin,” he went on to say.
Safe haven assets like bitcoin may come in handy soon enough, as Deutsche Bank’s rapidly deteriorating situation