Sam Bankman-Fried, the co-founder of FTX, feels a crypto “autumn” is here rather than a “winter”. He said the deep and sharp plunges and lower trading volumes on exchanges stirred chatter of a “crypto winter”. Analysts describe this as a period when prices fall and stay low for a year or more.
However, with bitcoin sticking to $43,000 Bankman-Fried doesn’t think it’s really a crypto winter. He underlined that there is a lot of activity and excitement in the space. The crypto billionaire believes a better way to think is that there is an autumn, but there has certainly been a slowdown.
Sam Bankman-Fried highlighted the Federal Reserve remains the key driver of digital asset markets in the coming months. Analysts have also stated the Fed policy as the single biggest driver of the crypto market, right now. The Federal Reserve has rocked stock markets and its likes, including the crypto market, as it prepares to end the stimulus and raise interest rates.
This prompted investors to take up more economically sensitive bets, such as commodities and bank stocks. Bankman-Fried said the Fed policy’s strong correlation with market movements will remain over the next couple of months. The crypto entrepreneur revealed that there’s been a slight slowdown of trading activity on the FTX. However, he pointed out that volumes are not down a ton. It’s due to things being volatile.
The slowdown hasn’t dampened investors’ spirit to continue pumping into cryptocurrency.