The prolonged crypto winter context has caused disappointment and discouragement among many investors. Meanwhile, the CEO of FTX thinks that the current downturn is a good purification for the market.
The return of the crypto winter in 2022 has left most investors in the field feeling “cold.” In essence, crypto winter is a term that describes the downturn of the crypto market. This happens due to the negative volatility of coins, or digital assets. So the question is how long will the crypto winter last?
In response to the question that is also the concern of the entire community today, FTX CEO Sam Bankman-Fried made some comments. The crypto billionaire thinks that the crypto winter may have passed and “spring” is approaching.
Sharing with Fortune in an exclusive interview, Sam shared his perspective:
“I think they have seen the worst of the crypto winter. There are still some effects, but they’re not that bad.”
He also mentioned Bitcoin miners in the current context.
“I think some Bitcoin miners have hit it off. However, I am only referring to the $100 million scale, not billions of dollars.”
In addition, the 30-year-old man also issued an important warning next to his “pink” predictions. He thinks the crypto winter is coming to an end, but provided that the market does not continue to suffer larger “shocks” from the macroeconomics.
Sam emphasized that if stocks on Nasdaq fall another 25% and if interest rates do indeed rise to 7%, the crypto market could be in a recession for another two and a half years. At that time, it is possible that Bitcoin will plunge to $15,000 or $10,000. And then another period of crisis will follow.
The enveloping crypto winter caused Bitcoin and altcoins to continuously dump strongly. The market is in the dark as BTC price has split 3 since then and is currently trading around $23,000. The current Bitcoin market share is only 39.44%. Accordingly, most altcoins also dropped dramatically with no signs of recovery.
The “cold” of the crypto winter has led to the freezing of several companies in the field such as Three Arrow Capital, Terraform Labs and Voyager Digital.
But FTX has weathered the storm, and Sam thinks the downturn is a good cleanse for the industry.
“I think people should rethink how to value assets and come up with their own grounds instead of just focusing on them during ‘euphoria‘.
It is not difficult to realize that FTX has “overtaken” many companies and asserted its position even during the recession. This year, FTX purchased shares on the IEX Group Inc. Stock Exchange. and the Robinhood stock trading platform. In addition, FTX has provided hundreds of millions of liquidity through lending deals and proposed acquisitions of BlockFi or Voyager. Sam also shared that he will help Bitcoin miners if they encounter difficulties.
The move of the CEO of FTX aroused mixed opinions in the community. While many see him as a “hero” to save many crypto companies, others think that Sam is taking advantage of the difficult situation to “acquire” more for FTX.
However, Sam’s comments on the crypto winter have brought some specific perspectives and positive hopes for the crypto community.