The content discusses the current situation in cryptocurrency, specifically focusing on the decline of USDC and the potential impact on the market. It mentions Elon Musk’s possible interest in buying out Silicon Valley Bank and raises concerns about whether USDC can cover the losses and withdrawals. The author advises switching out USDC for USDT or cash due to the uncertainty. There is also mention of other banks facing issues, such as Silicon Valley Bank, and the fear of a government crackdown on Circle and USDC. The content concludes by discussing Elon Musk’s tweet about crypto and banks and the idea of Twitter acquiring Silicon Valley Bank.
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What’s Happening in Crypto Right Now
There is a lot of crazy stuff happening in crypto right now and I’ve made a ton of videos today so I apologize for that but we have to talk about this because as you can see here usdc is down at 98 cents a quarter coin gecko a lot of Cryptos are up like for example on binance bitcoin is showing 20 700 here it’s showing 20 500. I want to talk about what’s happening we got word from Elon Musk talk about possibly buying out Silicon Valley Bank we have a lot of questions over whether usdc is actually Going to be able to cover some of the losses and some of the withdrawals that are happening right now I want to talk about a lot of that and like I said I post a lot of videos today if you haven’t seen those videos I would highly suggest watching them because this is Probably the most jam-packed two or three days that we’ve had in months maybe six months maybe since FTX collapsed but maybe I think it’s actually more influential to the entire Market than that we’re seeing 100 billion dollar Banks fall down fall you know all the way down like silver had 200 billion dollars worth of deposits but even market caps of a couple hundred billion are getting cut by five or ten percent in a day so let’s talk about all that if you don’t mind hitting the Subscribe button underneath the video.
Concerns Over usdc Stability
This is like my fifth video today or Something like that so if you want to follow someone that is going to post no matter what time it is if there’s important information hit the Subscribe button underneath the video comment if you like this kind of stuff if you want to support the channel there is a link To the patreon I did tell everyone in the patreon that if you have any usdc I would switch it out I’d switch it out for usdt or better yet I would even put it in cash and pull it to your bank account because this is not a time to be Messing around with usdc so uh check out that patreon underneath the video now like I said usdc here showing about 97 97 and a half cents on coin gecko you can see it actually fell down a little bit more than it is right now so it says It’s 98.2 cents in the last 24 hours it fell down to they say 97.9 sense so what’s happening exactly well first of all Circle held had a undisclosed amount of cash at Silicon Valley Bank if you don’t know what’s happening with Silicon Valley Bank watch some of my Last videos but basically they have money at Citizens Trust Bank customers Bank New York melon New York Community Bank a division of Flagstar Bank Signature Bank Silicon Valley Bank and silvergate bank so Signature Bank Silicon Valley Bank and silvergate are all having issues right now and now people are withdrawing their money 750 Million dollars in the usdc redeemed over the last two hours and that’s as of about four hours ago well Clemente says he had no idea what the extent he has no idea what the extent of the exposure at silvergate is but it looks like some people aren’t Willing to wait to find out and I was the same way right I said in a video earlier that if I had any exposure to usdc I’d sell it out there’s no point in holding it now I don’t know if we’re going to continue to depag right I don’t Know how much of their cash is there we did have this post here that says usdc has about 11.4 billion split between seven Banks now I don’t know where they’re getting this information looks like from their website uh a lot of it probably held in reserves or treasuries Uh they they say two were Silicon Valley Bank and Si Bank bny melon likely holds the majority of their assets because it’s the safest so they’re saying if there’s 20 percent in svb in the haircut on svb is 92 percent being aggressive then backing of usdc is cut by 182 Million so they’re basically saying hey there’s a lot of money that’s not even in the banks uh and then split between all the banks even if uh even if Silicon Valley Bank goes down right they still have the majority of their deposits it’s just that they are short a bit so They’re gonna get most of their money back and so they’re saying that it’s maybe not that big of a deal however we know that there’s a lot of liquidity issues in crypto these days and no one is really willing to sit around and see if the usdc or Circle actually has the Money especially with the crackdowns happening recently in crypto uh there’s been some question over whether usdc will be one of the next companies or Circle will be one of the next companies that the government goes after which could be pretty sticky if this is happening at the same time that there’s A Crackdown could send the price down even more now I don’t think this is going to necessarily go down like UST where it goes down to a couple cents right because it’s an algorithmic stable coin they have the majority of the money backing it up or if not all of the money Uh they probably have all the money but it’s just a liquid at this point because it is in treasuries and uh it’s not just circle that’s having this this issue like we said earlier today there are hundreds if not thousands of companies and individuals that have money at Silicon Valley Bank for example Roku is tumbling and after hours trading saying that they had 26 of their cash and cash equivalents held at Silicon Valley bank and they do not know to what extent the company will be able to recover their cash now Roku fell just a couple percent On this news that they had 26 percent of their cash there it sounds like they won’t be able to get the majority of that cash back anytime soon you know maybe after that the FDIC uh Cycles through everything they can get some of their cash back but that could take a While so there’s just a lot of fear especially in usdc right now now Elon Musk posted this crypto is a scam keep money in Banks or banks are a scam keep money in crypto just pretty much saying exactly what everyone is thinking right now now someone said to Elon Musk that He thinks that they that Twitter should buy Silicon Valley Bank and become a digital bank now Elon Musk has said before that he wants to create an all-in-one app with payments uh on Twitter calling it uh the X app I believe it was and he said he’s open to The idea of doing this now I think um this wouldn’t be as hard as most people think because the market cap is pretty small for Silicon Valley bank right now and it sounds like the amount of cash that they need to come up with is pretty small they’re looking for people to buy Them out or they’re looking for loans and I think Elon could probably could probably have a cash infusion you might have to sell something maybe some Tesla stock maybe yes maybe he has a couple billion dollars sitting around but maybe you could buy them for you Know maybe not Pennies on the dollar but buy them at a nice discount and then be able to integrate them into Twitter now I will have to see how that works out if that’s his next purchase but it’s pretty interesting now going back to usdc I do Want to say certain websites and certain apps aren’t showing usdc trading at a discount for example on trading view it says it’s 0.9932 uh versus the US dollar so basically saying it’s app Peg when I looked on binance it was also right…
Conclusion
In conclusion, the cryptocurrency market is experiencing a tumultuous period with concerns surrounding the stability of usdc and the potential impact on various banks. The withdrawal of significant funds and the fear of regulatory crackdowns have intensified the uncertainty. Elon Musk’s interest in purchasing Silicon Valley Bank and his endorsement of cryptocurrencies as an alternative to traditional banks further add to the intrigue. It remains to be seen how these events will unfold and their impact on the market, but it is undoubtedly a critical time for cryptocurrency enthusiasts to stay informed and make informed decisions.
