With the collapse of Silvergate and Silicon Valley Bank leading to a banking crisis, crypto is the new safe haven, according to Cathie Wood.
The CEO of asset management firm ARK Invest, Cathie Wood, came out publicly in support of crypto as a safe haven, as a new banking crisis crept up in the world due to the collapse of Silvergate and Silicon Valley bank. She criticized the Federal Reserve’s policies for the current banking crisis, which has shaken the financial services industry worldwide.
At the same time, Bitcoin and other cryptos have also registered rallies, recovering all their recent losses. Cathie Wood wrote a long Twitter thread on the crisis, stating, ‘In our view, crypto is a solution to the central points of failure, the opacity, and the regulatory mistakes in the traditional financial system. Made the scapegoat for policy mistakes, crypto will move offshore, depriving the US of one of the most important innovations in history.
Wood analyzed the current crisis in detail on her thread, claiming how banks made a mistake in believing interest rates would be low for an extended period of time and that deposits would continue to increase. She also admitted her surprise that the banks could not convince the Federal Reserve of the upcoming crisis. Ultimately, she blamed the Fed’s policies for the current state of the banking crisis.
She believed the regulators made a ‘scapegoat’ out of crypto to hide their own mistakes. Cathie Wood is a long-time supporter of crypto, which is also supported by her firm’s investments in crypto. She also claimed that the banking crisis wouldn’t have occurred in crypto’s decentralized and transparent ecosystem.