Billionaire crypto entrepreneur Sam Bankman-FriedHe said that “fall” rather than crypto “winter” could be on the market, adding that the Federal Reserve will continue to be the main driver of digital asset markets in the coming months. Here are the details.
Bitcoin and other cryptocurrencies have slumped since hitting record highs in November as the Fed prepares to raise interest rates as it grapples with high inflation.
Sharp drops and low trading volumes in stock markets, a period when prices fall and stay low for a year or more “crypto winter” reintroduced his narrative. But Bankman-Fried, who co-founded crypto exchange FTX in 2019, told Insider on Tuesday:
“I don’t really think it’s a winter. We still see a lot of activity and a lot of excitement in this space. “
Instead, he said, there might be a better way to think of it as “autumn.” “There has definitely been a slowdown,” he said. The 29-year-old entrepreneur, who has a net worth of approximately $25 billion, Fed He also stated that his policy is currently the biggest driver of the crypto market.
As the Fed prepares to end the stimulus that allowed riskier investments to rise in 2020 and 2021, cryptocurrencies fell sharply alongside a drop in shares in fast-growing but unprofitable tech companies.
“I think we will continue to see this pretty strong correlation in the months to come as long as Fed policy continues to be one of the main drivers of market movements,” said Bankman-Fried. used the phrases.
Any crypto slowdown in the market hasn’t dampened investor enthusiasm for Bankman-Fried’s FTX exchange. Earlier this month, the stock market raised $400 million from major investment firms. 32 billion dollars reached a value.
Bankman-Fried said there has been a slight slowdown in trading activity in FTX. But “The volumes aren’t too low and I think part of it is that things are volatile.” he added.
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