Analyst to XRP Investors: Ready for SWIFT and DTCC. Price Will be Set before Clarity Act. Here’s why

As XRP trades at $1.08 after falling 19% over the past week, market participants continue to search for explanations behind the recent decline across the cryptocurrency sector.

Amid the volatility, crypto analyst {x} (@unknowDLT) has put forward a theory that connects the downturn to one of the most closely watched developments in global finance: the unwinding of the Japanese carry trade.

In a tweet, the analyst argued that the Japanese carry trade is “100% linked” to the market crash, suggesting that the timing of its unwinding aligns with the recent weakness seen across digital assets.

The post also tied this macroeconomic development to XRP’s long-term outlook, claiming that Japan will be the first country to adopt XRP and that the asset’s price could be established before the passage of the proposed Clarity Act in the United States.

The Carry Trade Theory Behind the Sell-Off

The analyst’s comments focus heavily on the Japanese carry trade, a strategy that has played a major role in global financial markets for decades. The trade involves investors borrowing Japanese yen at extremely low interest rates and investing the funds in higher-yielding assets elsewhere in the world.

However, as the Bank of Japan gradually moves away from its ultra-loose monetary policies and interest rates rise, the attractiveness of this strategy diminishes. Investors often respond by selling risk assets and repurchasing yen to close their positions. Many analysts have warned that such a process can reduce global liquidity and place pressure on markets ranging from equities to cryptocurrencies.

According to @unknowDLT, this unwinding process is the primary driver behind the recent market weakness. While the extent of its impact remains a subject of debate, the analyst believes the connection between the carry trade and the broader crypto decline is direct.

Japan’s Growing Connection to XRP

Beyond the macroeconomic discussion, the post also highlighted Japan’s relationship with XRP. The analyst stated that Japan will be the first country to adopt XRP, a claim that reflects a common narrative within sections of the XRP community.

Although Japan has not announced plans to adopt XRP as a national currency, the country has developed one of the most crypto-friendly regulatory environments in the world. Japanese financial giant SBI Holdings has maintained a long-standing relationship with Ripple and has supported initiatives involving the XRP Ledger for cross-border payments and remittance services.

Recent regulatory developments have also strengthened Japan’s position as a leading jurisdiction for digital asset innovation. Supporters of XRP often point to these developments as evidence that Japan could play a significant role in the asset’s future adoption by financial institutions.

Focus Turns to Regulation and Financial Infrastructure

The analyst also referenced the Clarity Act, SWIFT, and the DTCC, suggesting that XRP is positioning itself for greater institutional relevance. Many industry participants view the Clarity Act as a potential step toward establishing clearer rules for digital assets in the United States.

At the same time, institutions such as SWIFT and the DTCC continue to explore blockchain-based solutions, tokenization, and interoperability frameworks. These initiatives have fueled speculation about how established financial infrastructure could interact with digital assets in the years ahead.

The post ultimately presents a bullish outlook for XRP despite the recent decline. While some of the claims remain speculative, the commentary reflects a growing belief among XRP supporters that macroeconomic shifts, regulatory developments, and institutional adoption trends could converge to influence the asset’s future trajectory.

Meanwhile, reactions from the community remain mixed. One commenter, identified as tam, suggested that capital may have temporarily moved out of cryptocurrencies due to interest surrounding the SpaceX IPO, contributing to retail-driven selling pressure. The commenter added that a change in market direction could emerge once that activity subsides.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

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