Here’s When Bitcoin Will Start Growing Again: Billionaire Sam Bankman-Fried
FTX CEO believes ‘crypto will make a comeback’ and shared his vision of how soon it would happen
Crypto billionaire Sam Bankman-Fried, who founded and runs the top crypto exchange FTX, believes that Bitcoin and other cryptocurrencies will start to rise again, and it could happen soon enough.
“Not Nervous When Bitcoin Dropped to $20,000”
In a recent interview with Bloomberg on David Rubenshtein’s show, the FTX CEO stated that he was not very nervous when he saw the flagship cryptocurrency fall below the $30,000 level in May of this year.
The recent decline below the $20,000 level was caused by the speech given by Fed Reserve Chairman Jerome Powell, in which he said that the US central bank will maintain its hawkish position longer than previously expected.
When asked if crypto will make a comeback, Bankman-Fried answered in the affirmative. He believes that the fall of Bitcoin and the stock market has been largely influenced by the macroeconomic environment.
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He reckons that the crypto market followed the stock market crash, and that if the latter is to return, so will crypto.
Will crypto make a comeback?
FTX CEO and co-founder Sam Bankman-Fried thinks so. He says he wasn’t nervous when Bitcoin hit $20,000 earlier this year, before the latest drop after Fed Chair Powell’s recent speech on inflation pic.twitter.com/lfE9yEO5JC
— Bloomberg Crypto (@crypto) 31 August 2022
“Many weak hands were flushed out of crypto”
When Bitcoin started falling in May, the FTX boss expected this road to be “rocky” from the very beginning. And it lived up to his expectations, as many crypto businesses went bust due to the massive price drop of crypto.
Earlier, U.Today reported that Sam Bankman-Fried had actually invested approximately $1 billion in crypto platforms as loans. However, in a recent interview he admitted that he does not expect all these investments to be profitable, but rather to show “mixed results”.
He added that many things that needed to be flushed out of the crypto market were flushed out of it during the recent price crash.
This is the reason why this “crisis” is short-term, he believes
Sam Bankman-Fried said that in his view the current crisis is not a long-term problem. It would have been, per Bankman-Fried, if the Nasdaq fell 30-40% and Bitcoin fell to $10,000 per coin (as it was before 2020).
If so, it would be another “round of pain for the industry” and it would become more of a medium to long-term problem. But the crypto market will start to rise again when the stock market does, the CEO claimed.
“Bitcoin Shows Resilience Now”
Some experts have told Bloomberg that Bitcoin may have bottomed now, falling about 6% after Jerome Powell stated on August 26 that the Federal Reserve intends to stick with its hawkish strategy and thus price pressure on the stock market will continue. .
Under these bearish conditions, traders believe that the BTC drop was quite 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 has fallen 70.81% from its record high last November, when it reached $68,789. The current price level is close to the historical price peak Bitcoin reached in December 2017, which was the first significant all-time high for the flagship cryptocurrency.
