The crypto market has been witnessing a lot of downtrends, and the market has slumped considerably lately. A lot of crypto supporters have stated various reasons for such a situation.
But here is a prominent crypto entity who asserts that the core driver of this has been the Fed. The CEO of FTX, Sam Bankman-Fried, has recently highlighted to NPR that the Fed is raising interest rates massively to fight high inflation, and that has resulted in a recalibration of expectation of risk.
His Outlook For Business Depends On Upcoming Fed’s Decisions
Many investors utilize Bankman-Fried’s app and sites to buy and sell digital currencies. He further highlighted that he appreciated the difficulty of what the prominent bank was attempting to do. But much of his outlook for his business now relied on the Fed’s decisions that it would take ahead.
The Central bank announced the largest interest rate since the year 1994 only this week. And that the financial markets are quite jittery, and crypto has been in a meltdown zone. He signifies that literally, markets and the people with money are scared.
Last year the crypto space gained a lot of attention from the new investors, and there are concerns that as the market has slumped highly, how would it affect the amateurs. Some have used the service of crypto lenders.
Whereas the past week saw a bunch of crypto lenders steps back a bit with their operations like Babel Finance, Celsius network, etc.
The FTX CEO further suggested that a meltdown can shape the crypto regulations, which is a topic of discussion in Washington. He cited that it is likely there would be high scrutiny of how leverage is utilized in the digital assets space and how transparent the entities are about the dangers.
Many big crypto entities have been affected by the crypto market situations. And although Bankman-Fried’s company did not cease the hiring like some others. It has substantially slowed down the hiring process.
The flagship crypto-asset Bitcoin (BTC) is trading at $20,977 and is up by around 1.6% in the last twenty-four hours.
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Source: https://www.thecoinrepublic.com/2022/06/21/is-fed-driving-the-current-downtrends-this-crypto-billionaire-thinks-so/