Prominent cryptocurrency Founder and CEO of exchange FTX Sam Bankman-Friedmentioned a critical catalyst in his assessment of the current state of the cryptocurrency market. Here are the remarkable comments of the CEO.
“The cryptocurrency market will be sensitive to the overall macro environment and we are in a similar position right now. I can say that the biggest reason for this situation is the changes in interest rates that lead to the ‘strengthening and weakening’ of the nominal currencies. If the dollar strengthens, it will strengthen against Exxon, Amazon, and Bitcoin. In the opposite case, the opposite scenario will work exactly the same.
Many current macro developments are causing movements in currencies, and cryptocurrencies are responding to this movement.”
Koinfinans.com As we have reported, in a macro environment where interest rates are increased, bitcoin Other digital assets, in particular, are losing against the US Dollar. Despite this weakness, Sam Bankman-Fried thinks that there are signs of ‘stability’ in the cryptocurrency market.
“We no longer see drastic and sustained exits. We don’t see prolonged pain like what happened with the Terra and Three Arrows Capital collapses. It is possible to say that things are starting to improve a bit.”
According to the CEO of FTX, if a helping hand from the regulatory authorities comes, crypto may be able to break out of its current trend.
“I think what I can see as potentially having the biggest impact on the horizon is regulatory clarity, particularly in the United States, or cryptocurrency regulation what we call. Regulatory regimes are emerging that allow the industry to operate clearly in the country while protecting consumers. This has been the largest beluga whale in years and I think we can be close to these developments.”
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Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.