Foreign media reports indicate that Yoshitaka Kitao, Chairman and President of Japanese financial group SBI Holdings, attributes the recent decline in the crypto market to large institutions reallocating funds ahead of US tech company IPOs. He believes this volatility is more of a liquidity shift than a deterioration in the fundamentals of the crypto industry.
Funds Shift to Technology IPOs
The article mentions that Yoshitaka Kitao specifically named SpaceX, Anthropic, and OpenAI. According to him, some institutional investors temporarily withdrew funds from crypto assets to participate in these potential IPOs, thus amplifying the chain reaction of liquidations during market downturns.
$1.77 billion cleared in 24 hours
The article cites CoinGlass data, stating that 267,467 accounts were forcibly liquidated in the past 24 hours, totaling approximately $1.77 billion, of which long positions amounted to about $1.55 billion. Yoshitaka Kitao believes that these liquidations were primarily triggered by tightening external dollar liquidity, rather than a systemic problem with the crypto infrastructure itself.
The focus is on US legislation
The article also focuses on future regulatory and legislative developments in the United States. The report mentions that the U.S. Securities and Exchange Commission (SEC) is pushing for regulatory arrangements related to digital assets, including tokenized real-world assets and staking, and is attempting to further clarify the division of regulatory responsibilities with the Commodity Futures Trading Commission (CFTC).
Against this backdrop, Ripple is also strengthening its presence in Washington, D.C. The article states that Ripple has established a new operations office in the U.S. capital, with Chief Legal Officer Stuart Alderoty leading policy communications and viewing the CLARITY Act as a key legislative direction.
Additional information:In his article, Yoshitaka Kitao stated that if the relevant bill makes progress in the US Senate, it could become a trigger for a shift in the XRP narrative; however, the article's references to tech company IPO plans and some regulatory statements are mainly based on his personal judgment and foreign media reports.
