Is FTX CEO Sam Bankman Fried bailing out crypto firms signals a crypto market fall?

For quite some time now, the FTX CEO was helping many crypto firms that some crypto community members think of it as some signals

When Anthony Scaramucci, founder of Skybridge Capital, said that several decisions of Sam-Bankman Fried, including bailing out BlockFi, could be an indication of a bear market reaching the bottom, there are many reasons for other people to believe the same. However, this is not the only reason for all this, as the founder of the investment management company has provided several other instances that could support his opinion of the possibilities of the crypto market going down.

During a recent interview, Scaramucci agrees with the situations through which the crypto industry is going while facing some seriously challenging circumstances, and it’s not good. While he also mentioned the news that Voyager Digital, a prominent crypto broker firm, paused its operations on the platforms, including withdrawals, deposits and trading.

While citing the example of earlier financial downturns, whether it was 1998 or 2008, he said that there are many institutions and people who hold leverage more than they deserve, they seem highly enthusiastic, and they even have double collateralization. But such firms have seen their fate in the end, and a similar appears to be going on at present.

However, clarifying his stance, Scaramucci cleared that it’s for now when the crypto market is witnessing extreme conditions. He is quite optimistic about crypto assets’ long-term view and also argues against the notion that is treating cryptocurrencies as assets with no core or inherent value.

While explaining their opinion that Sam Bankman Fried stepping in to provide vital financial aid to crypto firms could be a context of the crypto market to see a button, Scaramucci said that despite heavy movements of cryptocurrencies in the crypto space, there had been Sam Bankman Fried seen to be someone willing to prevent the fall and to put up the capital.

Scaramucci thinks of the FTX CEO’s move as a part of a long-term plan that also sees through all the way to the upcoming bitcoin halving in early 2024. While looking at FTX providing a credit line worth $400 million to BlockFi, he thinks this will bring a lot of value to SBF as he is looking forward to customer acquisition that it can get through BlockFi through this opportunity.

ALSO READ: Bitcoin Again Surpasses Ethereum In Terms Of Mining Profitability: But There’s A Bigger Concern