Elon Musk responds to Cathie Wood on Bitcoin (BTC), Ethereum (ETH) rising in current banking crash
The Tesla CEO supported Cathie Wood regarding the current crisis in the US banking sphere
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Ark Invest CEO Cathie Wood has posted a thread on her Twitter handle to comment on the instability in the banking system that has been on display recently. She pointed out that the two leading cryptocurrencies rose in price on that.
Elon Musk, tech billionaire and head of several leading companies, including Twitter, joined the discussion in the comments section.
Slamming regulators for blocking crypto platforms
Cathie Woods stated that while the US banking system was taking hold, the two major cryptos, Bitcoin and Ethereum, as well as other digital currencies were taking advantage of the market and “didn’t skip a beat.”
Bitcoin hit an impressive local high, briefly breaching the $26,000 level, and is up over 17% this week. That was followed by a 5% drop. The Ethereum price has also risen 20.26% since the weekend, reaching $1,776, but it is now down to the $1,689 level.
However, Woods mentioned that the instability in the banking system as three major (and crypto-friendly) banks went down, two of them bailed out, presented a threat to the USDC stablecoin. It also affected TUSD, BUSD and USDP.
Elon Musk steps in and supports Woods
Before the crisis began, the SEC regulator sued the Kraken and Gemini exchanges for their crypto lending service, and the New York attorney filed a lawsuit against the KuCoin exchange, claiming that Ethereum is a security.
Instead of attacking the “decentralised, transparent and well-functioning” financial platforms that have no central point of failure, Wood believes that the regulators should have dealt with the weak points in the traditional banking system. The clear signs of a crisis there have been looming and similar to the crisis of the 1920s, Wood noted, perhaps referring to the Great Depression that hit the United States in 1929.
Twitter CEO Elon Musk commented that the situation with banks now is very similar to that back in 1929.
Robert Kiyosaki on the fall of three top banks
The three banks mentioned are Silvergate, Silicon Valley Bank and Signature Bank. All three had partnered with crypto companies such as exchanges. Signature Bank also worked with Paxos, the issuer of BUSD and USDP stablecoins. Ripple CEO Brad Garlinghouse also issued a statement on Twitter to say the company had little exposure to Signature Bank. Failure of the latter, however, will not affect Ripple’s daily transactions.
As reported by U.Today over the weekend, prominent investor and author Robert Kiyosaki predicted the collapse of Signature Bank on Saturday, saying two major banks have crashed and a third is poised to follow in its footsteps. He did not specify exactly which bank it would be.