Elon Musk Responds to Cathie Wood on Bitcoin (BTC), Ethereum (ETH) Surge in Current Bank Crash

Yuri Molkhan

Tesla boss backed Cathie Wood on the current US banking crisis

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Ark Invest CEO Cathie Wood posted a thread on her Twitter account to comment on the recent instability of the banking system. She pointed out that the two leading cryptocurrencies have risen in price as a result.

Elon Musk, tech billionaire and head of several leading companies including Twitter, joined the discussion in the comments.

Slamming regulators to block crypto platforms

Cathie Woods explained that while the US banking system was stuck, the two major cryptos, Bitcoin and Ethereum, as well as other digital currencies in the market, benefited and “didn’t miss a beat.”

Bitcoin hit an impressive local top, briefly surpassing $26,000 and up over 17% this week. A 5% decline followed. Ethereum price is also up 20.26% since the weekend to hit $1,776, but it has now fallen to the $1,689 level.

However, Woods mentioned that instability in the banking system, as three large (and crypto-friendly) banks collapsed, two of which were bailed out, posed a threat to the USDC stablecoin. It also affected TUSD, BUSD and USDP.

Elon Musk jumps in and supports Woods

Also, before the crisis began, the SEC regulators sued the Kraken and Gemini exchanges for their crypto lending service, and the New York Attorney General filed a lawsuit against the KuCoin exchange, claiming Ethereum is a security.

Instead of attacking these “decentralized, transparent and well-functioning” financial platforms, which have no central point of failure, Wood believes regulators should have addressed the vulnerabilities in the traditional banking system. The clear signs of a crisis were there and similar to the crisis of the 1920s, Wood noted, perhaps referring to the Great Depression that hit the US in 1929.

Twitter boss Elon Musk commented that the situation at banks today is very similar to that of 1929.

Robert Kiyosaki on the fall of three top banks

The three banks mentioned above are Silvergate, Silicon Valley Bank and Signature Bank. All three had worked with crypto firms such as exchanges. Signature Bank also partnered with Paxos, the issuer of the BUSD and USDP stablecoins. Ripple CEO Brad Garlinghouse also issued a statement on Twitter saying that the company has low exposure to Signature Bank. However, the failure of the latter will not affect Ripple’s daily transactions.

As U.Today reported over the weekend, prominent investor and writer Robert Kiyosaki predicted the collapse of Signature Bank on Saturday, saying that two major banks had collapsed and the third was poised to follow in its footsteps. He did not specify which bank it was exactly.

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