FTX's Sam Bankman-Fried: Have we bottomed yet?
The CEO of digital asset derivatives exchange FTX is naming a catalyst that he believes could have the biggest impact on the current state of the crypto market.
In a new interview on the Unchained Podcast with journalist Laura Shin, Sam Bankman-Fried says that the crypto market is still subject to macro forces.
“[Crypto] will react to the general macro environment and that is our position. The real big reason what we are seeing driving the market is changing in interest rates, leading to the strength and weakness of fiat currencies… If the dollar strengthens, it will get stronger. for Exxon. It will become stronger against Amazon and it will become stronger against Bitcoin. When you have a debuff, you will see the opposite.
Because a lot of the macro is being driven by currency moves, that will move the price of the cryptocurrency against the dollar. "
While Bitcoin (BTC) and other digital assets have succumbed to the strength of the US dollar, Bankman-Fried says he is starting to see some stability in the crypto market.
"We don't see some kind of continuous exit. We don't see the same acute pain we experienced in the week or month after the Terra LUNA and Three Arrows [Capital] incident. a little deadlocked pattern."
According to the CEO of FTX, cryptocurrencies can break out of the current trend if they get help from regulators.
“I think what you can see on the horizon that will have the biggest impact will be if we see clarity on regulation, especially in the United States. Regulatory regimes emerge that allow the industry to operate clearly domestically while protecting consumers; that's the biggest white whale in years, and I think we can get along. "
Oct 06, 2022