Sam Bankman-Fried, founder and CEO of cryptocurrency exchange FTX (FTT), said on Friday that the worst of the declines in the cryptocurrency space is probably over.
Sam Bankman-Fried: The worst is over!
Billionaire cryptocurrency investor Sam Bankman-Fried gave an interview to CNBC. “The real pain came, I think, three to four months ago,” Bankman-Fried said. We don’t necessarily anticipate more suffering from here. Things have become very stable in space,” he commented.
As you follow on Kriptokoin.com, the crypto market entered a long-term bull market with the effect of expansionary monetary policy during the pandemic period. However, to combat rising inflation, central banks, especially the Federal Reserve, turned to aggressive monetary policies. Accordingly, rising interest rates in early 2022 put pressure on speculative assets. Because of this, crypto prices have fallen sharply.
Cryptocurrency market crash
In this sale, the leading crypto Bitcoin (BTC) dropped from its all-time high (ATH) of $69,000 to just under $18k. Nowadays, Bitcoin has made a hard exit towards $21,000. The collapse experienced at the beginning of 2022 deepened further with the addition of dramatic events such as Terra (LUNA). This led to the crash affecting other parts of the crypto market as well.
Leading altcoin Ethereum (ETH) has slumped from ATH of around $4.9k to a 2022 low of just under $900. Ethereum rivals Cardano (ADA) and Solana (SOL) followed suit. Names like the popular meme coin Dogecoin (DOGE) also lost much of their value during the crash.
What needs to be done for Bitcoin to return to $ 60,000?
This flash crash in the crypto space has undermined many players in the industry. Here, the FTX has been a high-profile savior for some of its struggling rivals. This role included deals to fund BlockFi and provide a boost to Voyager Digital. It also bought a stake in the crypto exchange Robinhood (HOOD).
In its latest move, Bankman-Fried’s FTX Ventures has acquired a 30% stake in investment firm SkyBridge Capital, led by former Trump employee Anthony Scaramucci. Commenting on the deal, Bankman-Fried said the move aims to bring the digital asset community together with the traditional asset community.
Sam Bankman-Fried was also asked what needs to be done to bring Bitcoin (BTC) back to $60,000. The famous billionaire said that the crypto space will benefit from the general rally in asset prices and regulatory clarity. He also believes that in the longer term, demand for cryptocurrencies will be driven by expanding the technology’s use cases.
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