FTX boss believes that “crypto will back a comeback” and shared his vision of how soon it would happen
Crypto billionaire Sam Bankman-Fried, who founded and runs top-tier crypto exchange FTX, believes that bitcoin and other cryptocurrencies will start growing again, and it may soon.
“Not nervous when Bitcoin slumped to $20,000”
In a recent interview with Bloomberg on David Rubenshtein’s show, the FTX boss stated that he was not very nervous when he saw that the flagship cryptocurrency’s price dropped below the $30,000 level in May of this year.
The recent drop below the $20,000 level was due to a speech by Fed Reserve Chairman Jerome Powell, where he said the US central bank will continue to hold its aggressive position longer than previously expected.
When asked whether crypto will make a comeback, Bankman-Fried answered in the affirmative. He believes that, largely, the fall of Bitcoin and of the stock market has been impacted by the macroeconomic environment.
He believes that the crypto market followed the stock market crash and thus, if the latter is going to come back, so is crypto.
“A lot of weak hands were flushed out from crypto”
When Bitcoin began dropping in May, the FTX CEO expected this road to be “rocky” from the very beginning. And it lived up to his expectations, as many crypto businesses went broke due to the massive price fall of crypto.
Earlier, U.Today reported that Sam Banksman-Fried had actually invested nearly $1 billion in loans in the crypto platform. However, in a recent interview, he admitted that he does not expect all of these investments to be profitable, but rather to show “mixed results”.
He added that lots of things that needed to be flushed out of the crypto market were flushed out from it during the recent price crash.
That’s why this “crisis” is short-lived, he believes.
Sam Bankman-Fried said that, in his view, the current crisis is not a long-term issue. This, according to Bankman-Fried, would have happened if the Nasdaq index fell 30-40% and bitcoin fell to $10,000 per coin (as it was before 2020).
In that case, there would have been another “round of pain for the industry,” and it would have become more of a medium-to-long-term problem. But the crypto market will start going back up, when the stock market does, the CEO claimed.
“Bitcoin Is Now Showing Resilience”
Some experts have told Bloomberg that after the Federal Reserve intended to stick to its aggressive strategy by Jerome Powell on August 26, bitcoin has fallen by about 6%, bitcoin has so far reached the bottom, and thus , the price pressure on the stock market will continue. ,
In these bearish conditions, traders believe that the BTC fall was rather mild. During previous recessions, cryptocurrencies fell much harder than tech stocks. This time, according to analysts, Bitcoin is showing some resilience, which is “a promising sign.”
Currently, bitcoin is down 70.81 percent from its highs in November of last year, when it peaked at $68,789. The current price level is close to bitcoin’s historical price peak, which was reached in December 2017, the first significant record for the major cryptocurrency.
