17 March 2023 15:41, UTC
Reading time: ~2 m
Gemini co-founder Cameron Winklevoss reacts to the latest news about the Fed lending $300 billion to banks. Cameron stated that the Fed just gave everyone $300 billion more reasons to buy bitcoin.
The Fed just gave everyone $300 billion more reasons to buy bitcoin. pic.twitter.com/LnIjZtHRdb
— Cameron Winklevoss (@cameron) March 17, 2023
The reaction from Cameron came after the news surfaced about the cash-strapped banks borrowing $300 billion from the Fed’s emergency funds. The report itself was shared by the central bank.
Approximately $143 billion, which is almost half of the total amount, was allocated to holding companies for two major banks that faced failure in the past week, namely Silicon Valley Bank and Signature Bank. This situation has resulted in widespread concern among financial markets.
However, the Federal Reserve did not disclose the identities of the other banks that received the remaining half of the funds, nor did they indicate the number of recipients.
These numbers offer an initial insight into the extent of the Federal Reserve’s support for the financial industry following the collapse of two banks over the previous weekend. The Federal Reserve has further extended its aid by providing an extra $11.9 billion through a newly established lending facility announced on Sunday.
Following the news, as expected, the cryptocurrency market put on a bullish run. The price of major cryptocurrencies, which include Bitcoin, has pumped by 6.1% in the last 24 hours. According to CoinMarketCap data, Bitcoin has surpassed the $26,000 price level and is trading at $26,315.
The past two weeks have witnessed the collapse of three large cryptocurrency-friendly banks. The recent action by the Fed also shows the support that traditional financial institutions enjoy and what the cryptocurrency realm lacks.
Read the full article here