In a recent tweet, Billy Markus, who founded popular meme token DOGE together with Jackson Palmer in 2013, took to Twitter to comment on the current situation that can be seen on the financial markets at the moment. Markus is known on Twitter as “Shibetoshi Nakamoto.” If Dogecoin was meant to be a joke on Bitcoin, then his Twitter name is a joke based on anonymous BTC creator Satoshi Nakamoto. Elon Musk, the boss of Twitter and Tesla, has joined this deep discussion. Markus has criticized “every single thing about modern financial markets,” calling it “BS, insane, stupidity.” Musk sort of agreed with that, saying that Markus is “not far wrong.” Prominent DOGE-themed account @dogeofficialceo suggested that Dogecoin may be the answer for this.
Here’s what’s been happening recently
Recently, three major banks in the U.S., which also happened to be crypto-friendly ones, crashed, shutting down their operations: Silvergate, Silicon Valley Bank and Signature Bank. All three of them worked with cryptocurrency companies like exchanges. Ripple chief executive Brad Garlinghouse admitted in a recent statement on Twitter that Ripple did have small exposure to SVB, holding a small part of its cash balance in it. However, the crisis that hit the bank will not impact the company’s daily funds operations with funds.
U.S. gov bails out Signature Bank, Bitcoin surges to $25,000
The U.S. government promised that Signature Bank will be bailed out, but not a dollar of taxpayers’ money will be used. Some have doubted that, including prominent investor and Bitcoin supporter Robert Kiyosaki. The Bitcoin price jumped slightly over 10% on the news of another bank going down. Over the past 24 hours, the total growth of BTC constitutes over 13% as the flagship crypto recovered the $25,000 price level.
Santiment summarized the situation in a recent tweet, stating that what is happening is “crypto maxi’s dream scenario” – bank fears have reached a multi-year high, and the Fed Reserve is considering a halt in rate hiking and plans to begin to cut interest rates. Economist Alex Kruger also summarized recent events on financial markets, including what looks like Bitcoin’s decoupling from the S&P 500. S&P is down 0.6 percent% and financial markets are down 3.2%, but BTC is up 10.5%, along with 10-year Treasury bonds.
He also stated that in order to save banks from dying, the Fed should now begin to stop the rate hike.