- Ripple (XRP) fell along with other altcoins after the USDC stablecoin took a beating and took a dive from its $1 price value.
- Ripple’s CTO expressed serious concerns about SVB’s downfall while announcing that Ripple would issue a statement on its exposure to banks.
The weekend marked a rather worrying turn for the entire cryptocurrency market. Even the broader fintech and financial markets have not been spared, as recent events have caused panic among investors, traders and market participants.
For the cryptocurrency market, the new week has been gloomy for investors and major players. The sentiments shared by prominent figures collectively reflect uncertainty in the market and its potential next move. For altcoins, losses are still being recorded, and XRP et al have become some of the most bearish altcoins out there.
According to our data, XRP remains the sixth most valuable asset by market capitalization. While it might not lose ground anytime soon, it will take a lot of bullish momentum to maintain current levels.
Like many other altcoins, Ripple (XRP) has also taken a hit. Ripple fell sharply following the Silicon Valley Bank crash. The altcoin fell to $0.35 earlier today and looks to be targeting the $0.30 level. However, the price looks stable at the moment. With XRP gaining 1.85% in the past hour, the asset may continue to rise.
why the price cut
An unconfirmed rumor claims that Silicon Valley holds some funds belonging to Ripple. This could explain XRP’s bearish move, but with no concrete evidence of this, investors’ concerns are heightened. The price of XRP fell to 0.35 after the collapse of Silicon Valley Bank.
As we previously reported, Silicon Valley is believed to hold around $40 billion worth of USDC, which nearly led to its downfall. Circle’s USDC stablecoin also fell sharply and lost its peg to the U.S. dollar, hitting a low of $0.8774 yesterday (March 11).
Read more: Breaking: Failed Silicon Valley Bank Still Has $40 Billion in USDC Reserves – USDC Crash Imminent?
USDC appears to be making a comeback as the new week begins. The stablecoin has gained 2.16% in the past 24 hours and has since increased in price. USDC has yet to reclaim $1, but looks promising in the short-term as the price climbs to $0.97.
Ripple’s CTO speaks out on SVB crash while Ripple (XRP) struggles to stay afloat
Meanwhile, market supporters have been watching Ripple’s response, focusing on Ripple’s exposure to Silicon Valley Bank and whether Ripple will be affected. Ripple’s CTO David Schwartz told the market that there will be an announcement soon.
We will issue a statement shortly. I really can’t say anything until we do.
-David “JoelKatz” Schwartz (@JoelKatz) March 12, 2023
He went on to explain his confusion over bank failures, asserting that bank runs have the power to cause bank failures to be worrisome.
I still don’t understand how a run on the bank made it insolvent. If a bank was previously solvent, it meant that its assets exceeded its liabilities. A run would change neither the asset nor the obligation, so how could the obligation now exceed the asset?
He ultimately believed the bank was insolvent and had failed to accurately track its liabilities. She went on to explain that the bank had no “mark-to-market holdings of long-term treasury bonds,” which also played a role in Nanjing’s insolvency.
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