Tech mogul Elon Musk, who is known for his long-standing support of cryptocurrencies, in particular meme coin DOGE, has taken to Twitter to troll haters who often call cryptocurrencies a scam and advise taxpayers to keep their money in banks. Often enough, these people are famous in financial circles, run popular podcasts and appear as guests on CNBC shows.
The thing here is that two major banks, which happen to be friendly to cryptocurrencies, have got into big trouble. One is closing down at a loss and the other is in negotiations to sell itself to financial institutions — Silvergate bank and Silicon Valley Bank.
After Elon Musk's tweet, Dogecoin demonstrated a tiny growth of less than 0.5%.
Elon Musk makes fun of crypto haters as two banks go down
The meme tweeted by Musk features a person sweating in a fit of doubt having to make a choice between pressing one button of two. 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."
March 11, 2023
As reported by U.Today earlier, Silvergate bank, which offered 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 is closing its banking division after selling its assets at a loss. This was necessary to compensate for the $8 billion that was withdrawn by the customers abruptly as the crypto market began going down.
The second major crypto-friendly bank that now reportedly intends to shut down is the Silicon Valley Bank. As covered by U.Today, its parent company SVB Financial is now in talks to sell the bank, since customers have begun to actively withdraw their funds and the shares of the bank are plummeting.
Bitcoin grows despite possible SVB sale
Last Friday, March 3, the flagship cryptocurrency Bitcoin plummeted by roughly 6%, losing the $24,000 level and dropping to the $22,000 zone within an hour. The price fall was caused by the reaction of the crypto space to the news of the Silvergate crypto-friendly bank closing down.
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 back in January.
By now, Bitcoin has begun to demonstrate a revival and is trading at $20,616, showing a 3.5% growth in the past 24 hours. It seems to be unaffected by the news of another major crypto-friendly bank seeing its stocks plummet and being in talks to sell itself.
The crypto market has produced a positive reaction to the significant growth in the Non-Farm Payroll index that went up 311,000 in February — far above what analysts had expected.