It Started: USA Is Dumping XRP!

Added: 2026-05-19

[00:00:00]XRP army. I generally do not like making videos such as this one, but there are some undeniable warning signs that are currently being presented inside of the US economy and the broader world economy which begs all of your attention. And that is precisely why I'm doing this.

[00:00:21]I'm giving you the information that you need to hear, not the information that you maybe want to hear. But I want to make something very very clear for all of you guys that are watching this video. The long-term prospects for XRP and its price action have not changed.

[00:00:36]The long-term uh evaluation for XRP and its growth, nothing has changed there.

[00:00:42]But there are some shortterm negative catalysts which present an amazing opportunity in my point of view to get XRP for a discount. I'm going to explain what I am talking about, why XRP has been trading down, why we've been seeing some pretty major corrections across the crypto market, and so much more, so you guys are more informed. So, let's first talk about CPI inflation because this is one of the leading indicators as to where we are going in the future for risk on assets such as cryptocurrency.

[00:01:16]You can see that US CPI inflation is on track to exceed 5% as early as this year. And over the last six months, CPI inflation has averaged 0.4% on a month-over-month basis with March and April readings as high as 0.9%.

[00:01:38]And 0.6% respectively.

[00:01:41]If this trend continues, this puts the year-over-year inflation on pace to surge 5.2% in September. Okay, so when you look at this chart right here, what you'll notice is right before 2021, we had extremely low inflation numbers. I mean, it was nearing 0% in 2020 here before starting to rise once quantitative easing had begun. Eventually, the CPI inflation just absolutely exploded to these absurd numbers you're seeing up here, which were not sustainable, which caused the Federal Reserve to start quantitative tightening. And very soon after quantitative tightening had started, we saw inflation of course come back down to more sustainable levels before, of course, what we are now seeing again where we're breaking above this key level here and now on track to go up to 5% again. Now, what this looks like to me is potentially inflation rising once again, forcing the Fed down the road here, maybe in a few months, to start looking at quantitative tightening again. Now, I don't need to remind you guys what happened the last time quantitative tightening took place. It did result, of course, in major corrections for the crypto market, but the question is, how exactly will this play out? Are we going to get a really nice rally for the next, you know, few months while inflation is rising? Is the Fed going to lower rates when inflation is already elevated or are they going to start cutting rates? And what is this timeline going to look like? Well, when we look at Kevin Worsh and his messaging, who is the new Fed chair, by the way, he's starting to shift his messaging towards potentially starting to cut rates. And we know the market is going to react very aggressively to rates being cut much like what we saw back in 2022 because of course the inflation from rising oil prices and rising commodity prices as a result of that higher transportation and fuel cost that we are seeing right now. Now I do want to point out that hedge funds are also extremely extremely exposed right now to semiconductors. Now you might be wondering how would that impact XRP? I mean, semiconductors, chips, crypto, they're not really directly integrated into one another, but they are actually much more closely aligned than you might think. Bitcoin, as you may know, has Bitcoin mining, which involves a ton of computers, which have computer chips mining to validate transactions on the network and also acquire Bitcoin for doing so. This is a core functionality of how crypto actually operates. And so when semiconductors are in a massive bubble like this, it's actually becoming extremely cost prohibitive for miners to invest into the Bitcoin network, which then of course results in there being less people mining. Less miners is actually something that is negative for the price of Bitcoin because it makes the whole network less efficient. And of course, Bitcoin leads the rest of the crypto market. It is the number one cryptocurrency out there. And when Bitcoin goes down, so does the rest of the market. Whether you like it or not, XRP has not decoupled from Bitcoin yet.

[00:04:52]So, what I do imagine is eventually we're going to see less exposure to the semiconductor space. Perhaps some people say there's a bubble here. It might pop and that could actually result in something positive for cryptocurrency.

[00:05:06]But once again, that's going to take quite some time for that to actually play out.

[00:05:12]Another really important indicator is Berkshire Hathway. Warren Buffett's company is now sitting on an all-time high of 397 billion in cash, which is enough to buy $478 companies inside the S&P 500. Okay. So when we look at the numbers here, you can clearly see that every single period of financial crisis, uh, Berkshire Hathaway does indeed increase their cash holdings significantly. You can see this happening right before the 2008 financial crisis. And of course, once the stocks went for a massive correction, Bergkshire Hathway loaded up. Then we saw this again happen right leading up to the pandemic in 2020, we had a massive correction for a number of stocks. Berkshire Hathaway started to load up. Then of course we're now where we are right now where you can see the cash is unbelievably high at the current moment in time. I do imagine though a correction will eventually happen like it did back in 2021 like it did happen back in 2008. So we're just waiting for that correction for Berkshire Hathway to start buying in. And frankly speaking I don't think we're very far off. You can see we've been in this trend now for quite some time. It's been multiple multiple uh consecutive months now that we've been trading at these insane premiums for semiconductors, AI, technology stocks. So, I do think that correction is overdue in all honesty.

[00:06:41]But this does not mean that we cannot have another couple crazy months. Okay, that is entirely possible and honestly pretty likely that maybe the next couple of months for technology stocks will be crazy. Meaning that there is some potential upside for crypto too. But there's more so leaning towards risk right now. And that's why Berkshire Hathaway is sitting on so much cash.

[00:07:03]Now, I want to show you guys what is potentially the main reason Bergkshire Hathaway is sitting on so much cash.

[00:07:09]Well, you see the stock market and many other markets are overvalued in terms of price to earning ratios. And then we see bond yields are spiking higher globally.

[00:07:20]I mean, look at these numbers. You have Japan, you have the US, you have Canada, Europe. Every single country here on this list is spiking their yields. So, it actually makes a lot more sense to sit on cash or sit on uh bonds as opposed to crypto knowing that uh you know, you can see that there's probably some kind of bubble and that's why Bergkshire Hathway is making this move of course in order to basically mitigate risk in this particular situation. I mean, look at some of the yields here that you're seeing. Like the British yield is absolutely insane for the UK government bonds and and same deal with the US and Canada even. These these yields are very very very high for these 10-year yields. And so people are taking advantage of that. They're they're sitting on this cash. They're getting great yield. And you know that's resulting of course in a problem though for the US government too which I do think could potentially form a contagion. Now, what does this really mean though? Like, how can bond yields actually result in something negative for the rest of the economy? Well, higher borrowing costs for governments, businesses, and households generally results in, of course, less available capital in the market. So, in other words, when bond yields are spiking, mortgage rates are going up. Business loans are going up. All of these loans are also going up, too. And so companies will pay more for corporate bonds or loans, which reduces profitability, slows investment, and consumers then see higher rates on mortgages, credit cards, auto loans, and this also curbs spending. But then you also see a ton of pressure on the housing market at the same time. Mortgage rates often rise in tandem with treasury yields, reducing affordability and cooling demand for homes. And so what I'm essentially saying is if this trend continues for bond yields, the average investor and the average company will not have nearly as much expendable capital to invest in risk-on assets, which generally every single time we've seen this historically has resulted in downwards pressure for crypto, for tech stocks, and that's why Bergkshire Hathway is sitting on so much cash. There's also, of course, obvious negative impacts in the stock market when they can't get access to new capital, uh, like capex to basically spend on on growing their business. So, that that's what's going on there. Now, there's also, of course, the obvious catalyst, which is the Middle East situation. Iran has updated a proposal for a deal to end the war, but once again, the White House hates the deal.

[00:09:53]it's insufficient for a deal. And so we're just getting more stalling in the Middle East, which means higher elevated inflation due to the fact that oil prices will remain high because we can't find a deal there. There's a complete blockade that has not changed. And so we have to trade accordingly to that. So really in the end, it's a waiting game.

[00:10:13]We have to wait for yields to go down.

[00:10:15]We have to wait to see what Kevin Walsh says during his next meeting. Is he looking to potentially raise interest rates? We're going to see.

[00:10:23]And of course, we're wanting to look at Bergkshire Hathway's cash pile here. Is he going to start dwindling down that cash pile, starting to invest? Are the stock markets going to, you know, eventually start deflating a little bit?

[00:10:35]I mean, we're going to see very, very soon, I imagine. So, what am I keeping my eye on with XRP? Well, I do think XRP is the most reactive riskon asset inside of the market right now. And so, it's a really great indicator as to where we're headed. If XRP is showing weakness, if it's trading down, it's a really strong indication that of course there is less available capital inside of the markets to invest. Um, hedge funds, they don't generally invest hundreds of billions or trillions of dollars into the crypto industry. If that happened, our prices would be a lot higher right now. They're instead putting all of their focus in semiconductors, which frankly speaking, I think is a a big risk with rising yields and all of this because these guys rely very heavily on investment.

[00:11:20]So, we're going to see how that plays out. But one thing I know for absolute certain that has been paying me massive, massive dividends during this period of time is Coin Depot. Okay, I've been using Coin Depot and I've actually been dollar cost averaging into my daily and weekly accounts. I've been putting about $2,000 additional into my daily compounding account and I've gone from earning, you know, maybe just a few dollars a day now to over $14 USDC every single day with a relatively small balance. And I'm going to continue growing this account alongside you guys to show you guys the amazing potential of just using stable coins or XRP or other cryptos to earn amazing yield. You can see the interest I've gotten paid out from my daily account, 936, earning 14 bucks a day right now and it's going to keep going up. And then on my USC weekly account, you can see I've earned over $6,000 in interest, getting $460 every single week on $137,000 there. I do think that if you guys aren't currently taking advantage of what Coin Depot has to offer, you are going to be left behind in terms of how much gains you can get during this bare market and during the next bull market too because you can also of course do a number of other cryptocurrencies on here including XRP, Bitcoin, and so many others. I'm earning 17% compound interest on my daily account and 17.5% weekly interest on my weekly compound account. So, it's pretty incredible what I'm able to do here on, you know, stable coins or crypto that otherwise would just be sitting around earning absolutely zero.

[00:12:50]So, if that sounds good to you guys, I'll leave a link for Coin Depot down below. They're highly trusted, fully audited, and have licenses in multiple different countries. Um, yeah, make sure to use my link so you get some extra benefits. And guys, thank you all for watching today's video. Much love. Peace