March 14, 2023 6:21 AM | 2 min read
“The Black Swan” author Nassim Nicholas Taleb said on Monday that the Federal Deposit Insurance Corporation, or FDIC, bailed out Bitcoin (CRYPTO: BTC).
What Happened: The collapse of two major banks — Silicon Valley Bank, a subsidiary of the SVB Financial Group (NASDAQ:SIVB), and Signature Bank (NASDAQ:SBNY) — left customers and depositors in a state of uncertainty. But those fears were quickly alleviated when U.S. regulators stepped in to rescue the depositors. In response, Bitcoin rose to $24,000.
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Yes, the FDIC bailed out Bitcoin.
— Nassim Nicholas Taleb (@nntaleb) March 13, 2023
Depositors of Silicon Valley Bank can now access their funds starting March 13, without any losses being taken on by taxpayers, according to a recent press release.
Signature Bank depositors will not suffer any losses and their accounts will be fully protected at no cost to taxpayers. However, shareholders and unsecured debt holders may not be protected and senior management has been removed.
“The U.S. banking system remains resilient and on a solid foundation,” the Fed said, “in large part due to reforms that were made after the financial crisis that ensured better safeguards for the banking industry.”
Earlier in January, Taleb, a Bitcoin critic and noted essayist and mathematical statistician, said the apex cryptocurrency is a “magnet for idiots.”
In an interview with the French magazine L’Express, the author of “The Black Swan” said Bitcoin was a “fool detector.” On the craze surrounding cryptocurrencies, Taleb said it was a product of near zero or sometimes negative interest rates without “real market functioning.”
Price Action: At the time of writing, BTC was trading at $24,508, up 9.25% in the last 24 hours, according to Benzinga Pro data.
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