🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

Are We Close To The End Of The Crypto Winter? FTX CEO Sam Bankman-Fried Thinks It Could Be

Published 02/08/2022, 23:15
Updated 03/08/2022, 00:10
© Reuters.  Are We Close To The End Of The Crypto Winter? FTX CEO Sam Bankman-Fried Thinks It Could Be
CRCW
-
IX
-

The value of cryptocurrencies has fallen by $2 trillion since the height of a massive bull run in 2021, resulting in what the crypto industry calls a "crypto winter," or a period of a prolonged bear market.

The largest digital currency in the world, Bitcoin (CRYPTO: BTC), is down 65% from its record high of around $69,000 reached in November.

The bottom for cryptocurrency was June 18. Since then, the sector has regained a $1 trillion market cap, leading some people, including FTX CEO Sam Bankman-Fried, to believe that the winter may be over.

Read also: Twitter (NYSE:TWTR) Users Could Soon See Elon Musk's Monthly Tweet Count: Here's How

What Happened: Bankman-Fried appeared on Fox Business on Tuesday to discuss various topics including the rejected Voyager Digital Ltd (OTCMKTS: VYGVQ) buyout, the newly introduced stock trading portion of the FTX website and the crypto winter — of which he was asked if it may be nearing its end.

“It could be,” the billionaire said. “Ultimately, so much of this is going to be based on what happens in macro that it’s going to be hard to say for sure.

“If we were on a macro level at the end of the selloff, and we saw a continued recovery in stocks,” he added.

“I think we would be at the end of the crypto winter, and I think we would see a recovery on the crypto side,” Bankman-Fried noted.

It is worth noting that the equity market bottomed on June 16, and the S&P 500 rallied nearly 12% since.

“The only caveat to this,” Bankman-Fried warned, “is if we see stocks plunge again, I think we’re going to see more pain in crypto as well.”

Photo: Volodymyr_Shtun via Shutterstock

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.