- Tesla CEO, Elon Musk, nodded in agreement as she praised digital asset networks.
- The financial regulators need to investigate the obvious signs of a catastrophe as per Cathie.
CEO of Ark Invest Cathie Wood slammed the American banking industry after many institutions failed. Tesla CEO, Elon Musk, nodded in agreement as she praised digital asset networks as a solution to the banking debacle.
Cathie Wood tweeted a brief summary of the latest crisis, in which the US Bank capitulated before the authorities. Throughout the bank-led crisis, she said, Bitcoin, Ethereum, and other crypto networks ran well.
While the US banking system was seizing up in response to bank runs threatening regional banks, Bitcoin, Ethereum, and other crypto networks didn’t skip a beat. Instability in the banking system threatened stablecoins, the on-ramps to DeFi, in stark contrast to regulator rhetoric https://t.co/r5xwC96Pdj
— Cathie Wood (@CathieDWood) March 15, 2023
She went on to say that stablecoins and the gateways to DeFi were also in danger due to banking system instability. According to Cathie Wood, the regulator’s attention must be paid to the conventional banking system’s growing reliance on centralized, non-transparent points of failure. However, regulators are obstructing efforts to create financially viable decentralized, open, auditable systems.
Crypto Market Bounces Strongly
The CEO of Ark Invest pointed out that the financial regulators need to investigate the obvious signs of a catastrophe. With short rates increasing by a factor of 19 in a little over a year, there is now a mismatch between the asset and liability duration.
Wood reported that annual bank deposit growth has slowed for the first time since 1920. In light of Elon Musk’s observation, it seems this year has many characteristics with 1929.
Three crypto-friendly banks failing within a week dealt a severe blow to the global cryptocurrency economy. Bitcoin’s price fell below $20,000, while the whole market worth fell below $1 trillion. On Tuesday, though, Bitcoin’s price soared beyond the $26,000 mark and the rest of the market even bounded back strongly.
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