The cryptocurrency market has been in a bearish development over the previous few months, and FTX’s Bankman-Fried says the greenback’s rise is behind the decline.
Sam Bankman-Fried, the CEO and founding father of the FTX crypto change, informed Bloomberg in a current interview that the US Greenback’s rise in current months is behind the final decline within the cryptocurrency market.
He said that the Fed’s insurance policies have strengthened the US {Dollars} however have negatively affected the crypto and different monetary markets. Bankman-Fried mentioned;
“{Dollars} are up this 12 months. That is the 12 months of coverage change.”
Bitcoin, the world’s main cryptocurrency by market worth, is down by greater than 50% because the begin of the 12 months. In the meantime, the Bloomberg Greenback Spot Index climbed about 10% throughout the identical interval.
This comes as america Federal Reserve raised borrowing charges in an try and gradual inflation.
Regardless of the present market situations, Bankman-Fried mentioned he stays optimistic about cryptocurrencies because of the regulatory readability that’s coming to the business. He believes that regulatory readability will assist unlock the crypto asset class for quite a few monetary establishments that wish to become involved within the sector.
Bankman-Fried’s feedback come a number of days after the enterprise capital arm of FTX purchased a 30% stake in Anthony Scaramucci’s SkyBridge Capital.
FTX has turn into one of many greatest spenders throughout this bear market, with the corporate shelling out a whole lot of thousands and thousands of {dollars}.
The corporate has issued bailouts to struggling cryptocurrency corporations in a bid to avoid wasting them and guarantee they proceed to supply providers to their shoppers. The transfer has earned Bankman-Fried the title of JPMorgan of the crypto area.
The entire cryptocurrency market cap reached an all-time excessive of $3 trillion in November 2021. Nonetheless, with the bear market presently in play, the whole crypto market has dropped to round $1 trillion.
