Main idea: Jake Clever believes that in the event of a global liquidity crisis, traditional financial systems will face significant pressure, which may make XRP stand out from other cryptocurrencies due to its ability to facilitate instant settlement.
⚡ Factors that may trigger the crisis
Oil price shock:
Political tensions with Iran, Venezuela, China, and Russia could drive oil prices up by 20-40%.
This could lead to the collapse of the Japanese yen carry trade, a method that has been used for decades to borrow yen and invest in stocks, bonds, and cryptocurrencies.
If these deals collapse, investors will resort to selling everything they can to move towards what they perceive as safer assets, namely Japanese bonds.
Pressure on Tether (USDT):
The market currently contains Tether worth $190 billion, but not all of it is backed solely by U.S. bonds.
If global 'margin calls' occur, the value of the assets backing Tether could drop by 20-50%, putting pressure on the price of USDT and reducing liquidity on exchanges.
Bitcoin selling by institutions:
Companies like MicroStrategy and Bitcoin exchange-traded funds (ETFs) may have to sell in a panic.
This mass selling could lead to a significant drop in the price of Bitcoin, potentially reaching $20,000 according to Clever.
🚀 Why XRP could be the winner
Instant settlement: XRP can finalize transactions within 3-5 seconds, which is critical if there is pressure on traditional systems or slow Bitcoin transactions.
Limited circulating supply: Clever believes that the liquid supply of XRP is very limited, so any small buying pressure could quickly drive up the price.
If the expected scenario materializes, XRP could play a significant role in global financing by the end of the year.
