Tech Billionaire Elon Musk, who is known for his longtime support of cryptocurrencies, in particular meme coin DOGE, has taken to Twitter to troll haters who often call cryptocurrencies a scam and taxpayers. are advised to keep their money in banks.
Often enough, these people are well-known in financial circles, run popular podcasts, and appear as guests on CNBC shows. The point here is that two major banks that have been friendly to cryptocurrencies are in big trouble.
One is closing at a loss and the other is in talks to sell itself to financial institutions – Silvergate Bank and Silicon Valley Bank. After Elon Musk’s tweet, Dogecoin exhibited a small increase of less than 0.5%.
The meme tweeted by Musk features a person sweating in a state of doubt to choose between pressing one of two buttons.
The caption under one button says “crypto is a scam, keep money in banks.” The caption under the second one tells you that “banks are a scam, keep money in crypto.”
As previously reported by U.Today, Silvergate Bank, which has provided its services to crypto startups and exchanges since 2013, that includes the bankrupt FTX exchange, has recently stated that it is shutting down its operations due to the recent developments in the crypto space and regulatory actions.
The bank was run by Silvergate Capital, which announced it was spinning off its banking division after selling its assets at a loss. This was necessary to compensate for the $8 billion that customers suddenly pulled out as the cryptocurrency market began to slide.
The other major crypto-friendly bank that it now reportedly intends to shut down is Silicon Valley Bank.
As covered by U.Today, its parent company SVB Financial is now in talks to sell the bank, as customers actively withdraw their funds and the bank’s shares are plunging.
Last Friday, March 3, the leading cryptocurrency bitcoin fell by almost 6%, shedding the $24,000 level and falling into the $22,000 region within an hour. The price drop was caused by the reaction of the crypto space to the news of the closure of the Silvergate crypto-friendly bank.
At the start of the week, several other negative factors including the aforementioned Silvergate story pushed bitcoin below the $20,000 level, where it was last seen in January.
As of now, bitcoin has started showing revival and is trading at $20,616, showing a 3.5% increase in the last 24 hours. It appears to be unfazed by a drop in shares of another major crypto-friendly bank and reports that it is in talks to sell itself.
The crypto market has generated a positive response to a significant increase in the non-farm payrolls index which rose to 311,000 in February – much higher than analysts expected.
Information Source: UTODAY
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