Have we bottomed out? FTX’s Sam Bankman-Fried weighs in on the state of the crypto markets as prices consolidate
The CEO of digital asset derivative exchange FTX cites a catalyst that he believes could have the biggest impact on the current state of the crypto markets.
In a new interview on the Unchained Podcast with journalist Laura Shin, Sam Bankman-Fried says that crypto markets remain at the mercy of macro forces.
“[Crypto] is going to be responsive to overall macro environments, and that’s the position we’re in. The big reason is really that what we’re seeing driving the markets are changes in interest rates, leading to strengthening and weakening of fiat currencies… If dollar strengthens, it is going to strengthen against Exxon. It’s going to strengthen against Amazon, and it’s going to strengthen against Bitcoin. When you have a weakness, you’re going to see the opposite.
Because a lot of macro is driven by movements in currencies, that will move crypto prices 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 crypto markets.
“We’re not seeing a kind of continuous outflow. We’re not seeing acute pain the way we were in the week to month after Terra LUNA and the Three Arrows [Capital] event. Things are in a small holding pattern.”
According to the FTX CEO, crypto could break out of its current trend if it gets a helping hand from regulatory agencies.
“I think what I could potentially see on the horizon that would have the biggest impact would be if we saw regulatory clarity, particularly in the US. Regulatory regimes coming out that allow industry to operate with clarity in the country while protecting consumers – that’s been the biggest white whale for many years, and I think we can be close.”
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