BitcoinBTC, ethereum and other major cryptocurrencies have surged this week amidst a banking crisis that could be about to cause a massive Federal Reserve earthquake.
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The bitcoin price has topped $27,000 per bitcoin, up over 30% since this time last week, hitting a level it hasn’t seen since June last year. The bitcoin boom has also sent the ethereum price and other major cryptocurrencies sharply higher.
Now, after JPMorgan analysts said the Fed’s new bank backstop program could inject up to $2 trillion into the financial system, technology investor and former CoinbaseCOIN chief tech officer Balaji Srinivasan has warned the latest banking crisis could spark hyperinflation in the U.S.—and advised people to “buy bitcoin now and get your coins off exchanges.”
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“The central bank, the banks, and the bank regulators have bankrupted all of us,” Srinivasan, who’s been credited with calling the seriousness of the Covid-19 pandemic before the healthcare establishment, posted to Twitter.
“They hid their insolvency from you, the depositors. And they’re about to print $2 trillion to hyperinflate the dollar. In the digital age this will happen very quickly. So buy bitcoin now and get your coins off exchanges.”
Last week, Silicon Valley Bank (SVBVB), a regional bank that specialized in startup and tech company lending, was shuttered following panic among depositors that it was insolvent. Signature Bank was also shut down by regulators, a move that may have been due to concerns over its anti-money laundering controls.
The collapse of SVB was the biggest U.S. bank failure since the 2008 financial crisis and sent shockwaves through the financial system as customers scrambled to withdraw cash and authorities tried to restore confidence.
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“The entire banking system is lying to you about solvency,” Srinivasan said. “They are trying to ensure you don’t exit to bitcoin before they print the money.”
Srinivasan added “the speed of hyperinflation” can take “people off guard.”
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