Cardano Boss Dumps X’s Outrage Machine, AI Twin Takes Over DailyCoin
Source link ]]>
The U.S. Federal Reserve sticks to its goal of reducing inflation to 2% and raises interest rates by another 25 bps to 4.75%-5%. Fed Chair Jerome Powell said officials don’t see rate cuts this year and could raise rates higher than expected if needed. He also added that US banks are “sound”. Meanwhile, Treasury Secretary Janet Yellen disclosed that the FDIC will not offer “blanket insurance” for all bank deposits.
Notable personalities including Tesla CEO Elon Musk, billionaire Bill Ackman, former Coinbase CTO Balaji Srinivasan, and Ark Invest CEO Cathie Wood criticized the U.S. Federal Reserve’s rate hikes amid the banking crisis.
Elon Musk called the Fed rate hike decision “foolish”. He asserts it will worsen depositor flight as people move money from low-interest savings accounts to high-interest money market accounts. Earlier, Elon Musk warned the Fed of worsening market conditions and the banking crisis if the Fed continues to raise rates.
A major driver of depositor flight is people moving money from low interest savings accounts to high interest money market (Treasury Bill) accounts.
This foolish rate hike will worsen depositor flight.
— Elon Musk (@elonmusk) March 22, 2023
Bill Ackman also urged the Fed to pause rate hikes in March due to the ongoing banking crisis caused by the closure of three banks by regulators and Credit Suisse issue.
In fresh warnings after the Fed rate hike and Yellen comments, he said bank runs will continue risking impact on lending rates and the U.S. economy. Also, the Treasury not considering an expansion of deposit insurance is a “big mistake.”
This is a big mistake. We are suffering from self-inflicted wounds. @SecYellen statement combined with 25bps puts even more pressure on the non-SIBs. https://t.co/yFD4TDuNCC
— Bill Ackman (@BillAckman) March 22, 2023
Balaji Srinivasan asserts the U.S. government is secretly printing trillions of dollars while hiking rates. The Fed rate hikes caused domestic banks to collapse and risks further bank runs. He claims the BTFP, the swap lines, and the “FedDIC” policy are meant for printing money. The system will continue to attack crypto for its failure, but crypto is resilient.
He recommends buying Bitcoin and getting coins off exchanges. Also, he believes the crypto industry can thrive in a Bitcoin-friendly jurisdiction like Florida and Texas, or El Salvador and UAE.
Crypto Market Strong After Fed Rate Hike
Cathie Wood took to Twitter reminding investors and the government that crypto assets soared after the collapse of Silicon Valley Bank. The 20-fold increase in the Fed funds rate will make regional banks and the equity and bond holders to be “wiped out.”
TradFi businesses and individuals are hedging their fiat assets with some crypto assets. Meanwhile, regional banks are slowly moving from a liquidity crisis to a solvency crisis.
Meanwhile, BitMEX co-founder Arthur Hayes thanked Fed Chair Jerome Powell for the rate hike. Hayes claims it will help him buy the Bitcoin dip, becoming more bullish on Bitcoin hitting $1 million.
The faster Powell hikes, the faster he will have to cut. I will be buying all dips in $BTC. Thank you ser for more entry points.$BTC = $1mm#banktermfundingprogram = Yield Curve Control
— Arthur Hayes (@CryptoHayes) March 22, 2023
Also Read: Bitcoin Price and Crypto Market Tank Over SEC’s Action on Coinbase
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Even as cryptocurrencies are slowly gaining mainstream adoption, the path forward isn’t smooth for many digital currencies.
Dogecoin (CRYPTO: DOGE) cofounder Billy Markus came down hard on Mozilla for backtracking on its decision to accept donations in cryptocurrencies.
Markus attacked Mozilla for succumbing to what he called “an ignorant, reactionary internet mob.”
For the unversed, the Mozilla Foundation, a non-profit organization behind the Firefox web browser, on Thursday announced through Twitter it will pause the ability to donate via cryptocurrencies, even as it reviews “if and how” its current policy on crypto donations fits with its climate goals.
The foundation faced a backlash from Twitter when it announced an earlier decision to accept donations in digital currencies such as Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH) and Dogecoin.
Those opposed to the move, primarily on environmental grounds, took to Twitter to express discontent over Mozilla’s decision and threatened to cancel recurring donations to the foundation.
Related Link: 2022 Begins With A Whimper For Most Cryptos, But 2 Currencies Are Making Strong Gains
In response to Mozilla’s announcement, Markus went on to suggest the environmental cost associated with paper dollars and the entire banking infrastructure is far worse.
“Accepting cryptocurrency doesn’t mean we support every bad thing about cryptocurrency just like accepting American dollars doesn’t mean we are okay with all the atrocities America has committed,” Markus tweeted.
to be clear, we should care about the environment, just y’know, recognize that if we are living in a first world country and whining on Twitter, we are pretty terrible for the planet, and stop trying to act like everything is the worst thing ever and we are all saints
— Shibetoshi Nakamoto (@BillyM2k) January 7, 2022
He also said internet outrage is “hypocritical and stupid” every time.
Crypto backers have also taken up cudgels against Mozilla and have threatened to stop using the Firefox browser.
Mozilla, meanwhile, has been accepting crypto donations for years, partnering with Coinbase Global, Inc. (NASDAQ:COIN) in 2014 to begin accepting Bitcoin donations. The recent outrage seems to have in reaction to the idea of legitimizing cryptos, it added.
Related Link: Bitcoin Reigns Supreme, Still Accounts For 46% of the Total Value of Crypto Markets: Survey