Sam Bankman-Fried, the crypto billionaire who founded and runs the top crypto exchange FTX, believes that the cryptocurrency market will start to rise again very soon.
When will the cryptocurrency market start growing again, according to Sam Bankman-Fried
In a recent interview with Bloomberg on David Rubenshtein’s show, the CEO of FTX shared that he wasn’t too worried when he saw Bitcoin plunge below the $30,000 mark in May of this year. The recent drop below the $20,000 level stemmed from a speech by Fed Reserve Chairman Jerome Powell in which he said the U.S. central bank would maintain its hawkish position longer than previously expected. When asked if crypto will make a comeback, Bankman-Fried answers in the affirmative. He says the decline in Bitcoin and the stock market has been largely influenced by the macroeconomic environment.
Sam Bankman-Fried thinks that the cryptocurrency market followed the stock market crash and so, if the latter is going to bounce back, so does crypto.
https://twitter.com/crypto/status/156124349186678790
“Many weak hands have been cleared from the market”
When Bitcoin started to decline in May, the CEO of FTX expected this path to be “challenging” from the start. And it lived up to his expectations, as many crypto businesses went bankrupt due to the massive drop in crypto prices. Sam Bankman-Fried previously invested nearly $1 billion in loans in crypto platforms. But he said in a recent interview that he doesn’t expect all these investments to be profitable. At the same time, he admitted that he expects it to show “mixed results” instead. He added that many things that should have been removed from the crypto market during the recent price crash were removed from it. Headlines before the interview cryptocoin.comas we have mentioned in this article.
Why will the cryptocurrency crisis be short lived?
Sam Bankman-Fried said that in his view, the current crisis is not a long-term problem. According to Bankman-Fried, this would be the case if Bitcoin dropped to $10,000 while the Nasdaq index fell 30-40%. Such an environment had occurred before 2020. In that case, according to Bankman-Fried, there would be “another pain cycle for the market.” It would also become more of a medium-long-term problem. However, the CEO claims that when the stock market rises, the crypto market will start to rise again.
“Bitcoin is showing flexibility now”
Some experts say Jerome Powell intends to stick with the Federal Reserve’s hawk strategy on Aug. This is due to the statement that price pressures on the stock market will continue.
In these bearish conditions, investors believe that the BTC drop is quite light. During previous recessions, cryptocurrencies have fallen much harder than tech stocks. This time around, Bitcoin is showing some resilience, which is a “promising sign,” according to analysts. Currently, Bitcoin is down 70.81% from its peak when it reached $68,789 in November of last year. The current price level is close to the historic price peak reached by Bitcoin in December 2017, the first significant all-time high for the leading cryptocurrency.
