Cathie Wood Explains Why Bitcoin, Crypto Assets Rose Amid Banking Crisis

Ark Investment Management CEO Cathie Wood on Wednesday argued why investors are considering crypto assets in response to the economic crisis.

What Happened: In a Twitter thread, she noted how, as crypto assets soared during the Silicon Valley Bank meltdown, the administration suggested that equity and bondholders were at risk of being “wiped out”.

Wood explained how businesses and individuals are now taking measures to hedge their fiat assets with crypto assets, resulting in risk reduction and increased returns by moving from “low-yielding bank deposits to higher-yielding money market funds.” 

“As a result, now that they can borrow at will from a government facility at ~4.5%, regional banks seem to be moving from a liquidity crisis to a slower-moving solvency crisis,” Wood tweeted.

See More: Top Indian Apps That Give Bitcoin, NFT Rewards

According to her,  Bitcoin BTC/USD and other crypto assets appreciated during this banking crisis because they “face no central points of failure: they are decentralized, transparent, and auditable.”

Price Action: At the time of writing, BTC was trading at $27,421, down 2.90% in the last 24 hours, according to Benzinga Pro.

Read More: Bitcoin, Ethereum, Dogecoin Slide After Fed Hike: Analyst Sees Apex Crypto ‘Consolidation Before Continuation’ At This Key Level

(Illustration: Gonzalo Lanzilotta on Benzinga)



Image and article originally from www.benzinga.com. Read the original article here.