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Hello this is Matt on the moon family Sedan channel in recent days xrp price Has been holding up rather well as Terrible news came out having to do with You know the Fed chair Jerome Powell Announcing that in terms of interest Rate hikes yeah there's going to be more And then silvergate Bank uh falling Apart and then uh Silicon Valley Bank Falling apart xrp held up incredibly Well in fact it was moving up for for Much of that eventually of the terrible News became too much and xrp eventually Started to move a little bit to the Downside but Um xrp has been among the best Performers for much of the last week Actually and it's just a hair down at The time that I'm recording this over The last 24 hours but not by much But if you want to know what's going to Be happening in terms of xrp price Action what you really need to focus on Especially for this upcoming week and Especially for tomorrow because tomorrow Could be an absolute Whirlwind depending On a number of factors which I'm going To run through with you uh which you Need to be watching is what happens Regarding Silicon Valley Bank there's There's talks of a potential bailout and There's also warnings from all sorts of Individuals that if there isn't some Sort of resolution or some sort of
Assurance that depositors are going to Be able to you know be made whole get Their deposits back Uh if there isn't some sort of assurance Summer warning that it could result in Bank runs on thousands of Banks and so I Don't know if that's a bit much that's That's like a that's doomsday sounding But the theory effectively is not Getting the specifics as we go through The video but the theory is in a Nutshell that uh people being spooked by What happened with Silicon Valley Bank Uh having less confidence in their own Regional Banks smaller institutions and Fleeing to the relative safety of much Larger Banks like JP Morgan for example Uh which would crush all sorts of small And Regional banks in theory so I'm not Saying about I'm just telling you what's On the news but regardless of what ends Up happening and I don't have a crystal Ball so I don't know for sure uh this is Just what you need to be aware of like Things are going to develop it's a very Fluid situation and I'm telling you what News is coming tomorrow because one way Or another because either there's going To be a bailout or there's not but uh Before we're going further I do want to Be clear I do not have a financial Background of any kind I am not offering Financial advice and you definitely Should not buy or sell anything because
Of anything I say right I'm just an Enthusiast who enjoys making YouTube Videos about crypto related topics but Just as a hobby and just for fun as I Record this video as xrp is at 36 Cents Bitcoin at 20 612 bucks market cap for The Essa class 962 billion in Bitcoin Dominance and 41.36 so you know most Cryptocurrencies being pretty chill over The weekend here but Um let's take a look over here at usdc Still de-pegged it's worth 96 cents Should be a dollar but it's worth 96 Cents in case you had missed the news The other day it actually got down as Low as 87 cents the reason that happened Is because uh Circle which backs usdc USD coin they had billions of dollars in Silicon Valley Bank which has failed and That caused massive fear resulting in The price of usdc just plummeting down To 87 cents in relatively short order That also calls stablecoin Dai To plummets in price as well and it got Down as low as maybe 92 cents or so it Didn't get quite I don't know I think it Maybe was 89 since I'm kind of pulling From every it doesn't matter the point Is it it went down in kind and the Reason that it went down and I didn't Know this until I was looking into it The other day because I've never used Stable coins I don't have interest in Using them hopefully I never in a
Situation where I think I need to use Them maybe it'll happen I'm just not a Big fan of stable coins but setting that Aside so I don't know a ton about stable Coins uh but Dai as it turns out is Backed by usdc that's right so a stable Coin backed by a stable coin which is Backed by fiat currency in an insolvent Bank Good Times everybody good times Well well a round of applause everybody Well done there and uh tether another Stable coin has been reaping the Benefits currently worth one dollar and One cent so it's a bit of a premium at The moment I hear you got the crypto Fear and green index at 33 out of 100 so Participants in the space pretty spooked As is uh now take a look at this Pantera Paradigm Andreessen Horowitz Might be affected by Silicon Valley Bank Collapse and this was actually revealed By this Twitter account woo blockchain With 262 000 followers uh they noted uh That there are some crypto specific Funds here so a16z which is Andreessen How uh how Horowitz yeah it's Horowitz okay Andrea San Horowitz my mouth was this hard Today so there's Andreas in Horowitz Which is a16z then there's also Paradigm And also Pantera And so these are some of the crypto Funds that uh purportedly are you know Had some massive funds in Silicon Valley
Bank which shouldn't be surprising Because we know that Silicon Valley Bank It was a very crypto friendly uh but Anyway so here's the tweet from Wu Blockchain unverified us SEC ADV file Data shows that a16z related funds in Silicon Valley Bank was 2.85 billion Dollars as of May 6 2022 a paradigm Related funds 1.72 billion January 13 2023 uh and Pantera related funds 560 million Dollars February 3rd 2023. So when you're talking about I'm not as Familiar with Paradigm I've heard of Paradigm but uh Pantera is a hedge fund They're actually the first uh Cryptocurrency initially just Bitcoin a Hedge fund in the United States so They've been around for a good decade at This point and uh I know they're one of The the bigger ones Um what's that going to mean for the World of crypto to what degree is this Contagion going to spread if if and it Isn't if you know those funds don't Quickly get back to a Pantera what's That going to mean is there going to be Run basically a run on a hedge fund in Terms of you know people want to get out Of their positions This thing can be an absolute absolute Mess and that's why I was saying if you Want to know what's going to happen Tomorrow and really throughout the week
You've got to focus on what's happening With Silicon Valley Bank this is the Most important factor to focus on in the Short term at least So take a look at this from Cointelegraph Silicon Valley bank Failure could trigger run on U.S Regional Banks A federal reserve and deposit of Federal Deposit Insurance Corporation FDIC Decisions concerning the future of Silicon Valley Bank may affect Regional Banks across the United States putting Trillions of dollars at risk of a bank Run said former Bridgewater executive And CEO of investment firm unlimited Bob Elliott in a Twitter thread on March 11th Elliott stated that nearly a third Of deposits in the United States are Held in small Banks and around 50 Percent are uninsured And here's a quote the FDIC ensures Small deposits in all the banks in the United States but that only covers about Nine trillion of the nearly 17 trillion Of outstanding deposit base under the Hood the coverage rate is roughly 50 Percent across most institutions while Credit unions are higher not above Uh so that's a bit of a problem because Uh yeah I mean if you're if your typical United States citizen you got your Checking account you know you probably Don't have anywhere near 250 000 to sit
In the account in which case even if the Bank goes under you're covered super Duper what about the businesses Utilizing these Banks it doesn't take Much for a business to to far exceed That even a small business you think Even if there's a five or ten person Company how many salaries does it take To get above that threshold so you can Kind of just quickly in your mind run Through okay and that's that's just Considering one aspect of running a Business So lots of factors here but this would See that's why about half this is stated Here not covered by FDIC not insured That's a serious problem so I understand They're talking about the concerns here And then they're talking about Effectively people fleeing to larger Banks and I don't know about you I'll Speak for myself here and maybe I eat These words and I'm crying tomorrow or In a few days but I've been a small Business owner since 2010 my brother and I own a business And we use a bank that's in the region And Um you know to me subjectively they seem Rather large subjectively I'm not going To share any additional information on That I'd like to keep that private if I May but Um I'll just tell you like
Knowing this particular bank and I think This is probably the case for for many Banks perhaps most banks I think that you tend to have a you know You authenticate or not there's some Okay so let me order them there's some Banks that cater to specific Industries If those Industries are having a bad Time then yeah you could have a bunch of Withdrawals and you could have a bank Room which by the way is what happened With Silicon Valley Bank which caters to The tech sector but many banks if not Most banks cater to a broad variety of Industries in which case even if an Industry here or there is having a bad Day and they you know they're pulling Out funds to make sure they can continue To fund themselves they need to pull That money out of they got expenses Whatever it may be even if that's the Case you're not going to have a run on The bank because you have you know broad Exposure to pretty much every industry Under the Sun and so I'm sitting here Looking at this as a business owner been To the same bank for the the entirety of The time they have a good relationship With them And uh just my you know local branches That interact with them they're kind of Big but it's like I'd say Regional But I just I'm sitting here thinking Like
Knowing the broad exposure that they Have is it really the case that there's Going to be a run on my bank tomorrow is That really the case is that remotely Probable and that's going to be done the World over and then another world over But the United States over and and then What as as of like in the span of a day Or two now there's like a handful of Banks remaining it's basically the JP Morgan types and there are no small Banks anymore I just I look at this and To me I'm just like It seems like a bit too much fear and Maybe I eat those words and maybe I'm Crying you know in the future because I Didn't move my funds to the biggest Banks on the planet where all the other Money is going Uh maybe I just I don't I don't really Buy into this to be honest with you I Just I just I don't think that's how Life works I think most of businesses in A general sense they're happy with the Relationships they have with their Banking Partners it's a hassle to move And switch to another bank and change Everything it impacts all sorts of stuff In terms of linking up with payroll it's Just a huge hassle it's just an Annoyance and so if you're a business Uh I mean maybe some people are going to Get spooked by this and I just is it is It gonna be the herds running
I don't know now if that happens the Reason that I'm even talking about this If that happens Uh yeah you're gonna have every you're Gonna have risk on assets taking it You're gonna have the the stock market Plumbing and you're gonna have a crypto Taking a massive hit maybe you do take Out those November lows of roughly 15 500 for Bitcoin But I'm not convinced that's going to Happen I'm just saying in a scenario Where it would happen oh yeah that's on The table again I think I'm just not but That's how big of a deal it would be I'm Just not convinced necessarily it would I think some people are getting a bit Too fearful a bit too quick now I'm not Saying there wouldn't be a additional Bank bank runs but what I would say is I Don't think that it's going to be you Know dispersed evenly throughout the Nation it would be for you know if There's other um you know banks that are Maybe heavy on Tech maybe they should be Fearful maybe there are some other Industries that I'm unaware of that Should be fearful hey uh actually we're Hard times you do and we have a very Specific customer base maybe we should Be fearful I could see that so maybe I Wouldn't be surprised to see more Bank Runs but if you're talking about just You know the general small to mid-sized
Bank uh that has broad exposure to a Bunch of different Industries I don't really buy that and maybe I'm Wrong again I could eat my words I just Don't buy it right now anyway uh peace Continue according to Fed data small Banks in the United States had 6.8 Trillion dollars in assets and 680 Billion dollars in equity as of February 2023. considering this scenario a Failure on the tech bank would put in Risk of a run on thousands of small Banks further making the svb situation A Main Street problem said Elliot I guess I still think that's too much but maybe I'm wrong Elliot's comments were among Many others Seen on social media channels over the Weekend as fear surrounded the future of The California Bank a petition created By wide combinator CEO Gary tan claims That nearly 40 000 of all depositors at Silicon Valley Bank are small businesses If and quote if Swift action isn't taken Over 100 000 people could soon lose Their jobs end quote says the document Urging Regulators to step in and Implement a backstop for deposits now in Terms of that that seems totally Plausible it's not like I could know Whether or not those numbers are Accurate but that seems completely Plausible that part absolutely does I'm Just telling you I am taking currently
Zero steps to switch my bank to a bigger To switch my checking account to a Bigger bank and all the funds I just it Might for my company I'm not I'm not Doing it I'm not doing it I hope that doesn't bite me but I really Like I that strongly feel like it's not Going to happen you know I think that You again you could see some Bank runs But for the general bank that just has a You know broad customer base all sorts Of Industries I just don't see that Happening and they're all going to Happen to run for the largest Okay and then there was this from Cointelegraph Bill Ackman warns us Government fixed mistake in 48 hours are Face destruction billionaire Bill Ackman Has urged the United States government To guarantee all deposits held by Silicon Valley Bank within the next 48 Hours or it risks the destruction of Many financial institutions In a March 11th tweet Bill Ackman CEO of Hedge fund management firm Pershing Square Capital Management said a giant Sucking sound will be heard from the Withdrawal of substantially all Uninsured deposits from all banks not Just the systemically important Banks uh Quote and that's the end of the quote Should the government fail to guarantee All of svb's deposits before the open on Monday so here's another individual and
Again maybe he's right and then I end up Crying tomorrow uh that would suck but It sucks to suck you know but the idea Of all of the banks throughout the Country unrelated to the specific Sectors Ah I'm not so confident that of course We may not end up finding out though and The reason I say that is uh there is Word that uh the government May step in To make sure that depositors uh don't End up taking the shaft on this Uh so here is a headline from Bloomberg U.S discusses fund to backstop deposits If more Banks fail The Federal Deposit Insurance Corporation FDIC and the Federal Reserve Are weighing creating a fund that would Allow Regulators to backstop more Deposits at banks that run into trouble Following Silicon Valley Banks collapse Regulators discuss the new special Vehicle in conversations with banking Executives according to people familiar With the matter the hope is that setting Up such a vehicle would reassure Depositors and help contain any Panic Said the people they asked not to be Identified because the talks weren't Public and so folks this is why I'm Saying like if you wonder what's going To happen on Monday you've got to be Following this right here and of course You know with banks closed over the
Weekend here not much additional is Going to happen in terms of you know Panic movement setting up new accounts With these massive Banks like JPMorgan That wasn't going to happen yesterday or Today it's the weekend banks are closed But uh it makes you wonder here is the Government going to step in and if they Do well then you're not going to have to Worry about any of that then you just Get told the the whole separate Conversation of should the government be Stepping in this or that should be Bailing out any banks or depositors Um now it doesn't look like the bank Itself is going to be bail that it looks Like the bank's dead I don't as far as I Know and we'll see what happens but uh I'd be surprised that the bank itself Gets bailed out it seems uh more like Depositors would just be made whole so But don't know for sure but that's what That's what it looks like now if you Want to hear my thoughts on you know This concept of the bailout if you Hadn't checked out the video at the First video I put out today Um which had to do with uh you know the Fact that Ripple likely has money in Collapsed uh Bank uh Silicon Valley Bank Uh Check out that video it was two videos Ago I put it out today And if you're curious I just think it's
An interesting topic for conversation Because and people get Fiery about this One and that's fine so like whether you Did whether you agree with me or Disagree on the topic totally fine I Just I think it's it's fair game to Discuss here but it's highly Consequential for what's happening Specifically happening specifically in Crypto now and because Ripple Um I I do think it's highly likely and For reasons I cited in the video that They do have money at Silicon Valley Bank so what happens here could have Direct impact on all of us as xrp Holders and I break down the reasons why In that video so I encourage you to Check it out plus it's just kind of fun To like have the little critical Thinking exercise on that topic and then Kind of debating people on should there Be you know if not even if not bailouts Or Banks should there be you know Vehicles you know monetary I guess Fiscal vehicles to make sure that Depositors are going to be made whole After this whole situation Because I mean you're you're talking About these depositors a lot of them are Small businesses as cited you know in This video in that article from Cointelegraph a lot of small businesses Here employing real people with real Families and then suddenly they don't
Get paychecks and you're And if it spreads from there if they're Wrecked Could be very bad and then all of the Risk on assets like stocks and crypto Will absolutely take a beating now if The government does step in here I don't Think you're going to be seeing equities Or crypto taking a beating uh well not For those reasons anyway I mean crypto Is in a precarious situation currently Regardless so we'll see what happens but If if we could actually stop this from Happening you know that that would that Would be that would be a notable event I'm not a financial advisor you should Not buy or sell anything because of Anything I say or right that would be a Very very bad idea until next time to The Moon family sedan
