The European stock markets fell on March 24 on renewed fears that the banking crisis could rear its ugly head once again. The latest selling was triggered after Deutsche Bank’s credit default swaps, which offer protection to the buyer against specific risks, soared on March 23 without any known catalyst.
That pulled down the shares of the German lender by 11%. European Central Bank President Christine Lagarde attempted to calm the markets, saying that the euro area baking sector was strong due to the regulatory reforms introduced after the Global Financial Crisis.
That could be one of the reasons for the solid recovery in the United States equities markets from the intraday lows.Although the banking crisis has been positive for Bitcoin’s (BTC) price, the trend may pause if the contagion spreads.
During times of panic, traders sell assets to curtail risk. At that time, if Bitcoin does not break below the $25,000 to $20,000 support zone, it will suggest that the bear phase is over.Read more on cointelegraph.com