The CEO of FTX, one of the world’s largest crypto exchanges, said the most damaging part of the ongoing cryptocurrency turbulence that sent tokens plunging and triggered the downfall of a number of major companies, has likely passed.
In recent weeks, FTX big boss Sam Bankman-Fried has become crypto’s lifeline, supplying badly needed funding to crypto companies that have collapsed as cryptocurrency prices have crumbled.
As of this writing, Bitcoin (BTC) is trading at $20,535, up 2.1% in the last seven days. The crypto has lost around 70% of its value, after registering an all-time high of $69,000 in November last year.
Suggested Reading | British Treasury To Hammer Out Crypto Law Despite Bank Of England’s Doubts
The drop in cryptocurrency prices may have reached its bottom, as prices have balanced, but it will mostly hinge on the macroeconomic environment, according to Bankman-Fried, who is from California but resides in the Bahamas, where FTX is headquartered.
This year has been a disaster for crypto investors. The market capitalization of these digital assets has fallen below $1 trillion, and the prices of nearly every cryptocurrency have fallen by more than half from their all-time peaks, with no fast rebound in sight in the face of the ongoing crypto winter.
Image: CryptoHubK
In the most literal sense, crypto winter occurs when prices decline and remain low for an extended period of time. Earlier this year, according to market experts, the wheels of the forthcoming crypto winter were set in action.
“I don’t think it’s an existential threat to the industry,” the 30-year old crypto billionaire, a 2014 graduate of the Massachusetts Institute of Technology, said in quotes by Reuters. “However, I believe it is a fair bit worse than I anticipated,” he continued, referring to the drop in Bitcoin prices.
According to Sharat Chandra, vice president of Research and Strategy at blockchain-based identity management platform EarthID, “crypto winter chills” have compelled even Bitcoin miners to liquidate their assets.
Suggested Reading | Jordan Belfort, The ‘Wolf Of Wall Street,’ Advises: Buy Bitcoin Today And Make Money
Crypto total market cap at $900 billion on the daily chart | Source: TradingView.com
Investors have fled the crypto markets as the U.S. Federal Reserve aggressively raised interest rates to contain hyperinflation. There will be continued market volatility, and sell-offs cannot be ruled out, analysts say.
Meanwhile, Bankman-Fried, who has already provided hundreds of millions of dollars in credit lines and has been the subject of buyout speculations, told Reuters that his company still has “a few billion” to shore up other crypto companies in financial distress.
Bankman-Fried asserts that bailouts and financial aid are essential for the health and sustainability of the crypto sector as a whole.
“It does get increasingly expensive with each one of these,” according to the billionaire, adding that FTX still had a substantial amount of money in its coffers to do a $2 billion deal, if the situation calls for it.
Featured image from Finews Asia, chart from TradingView.com
The London Stock Exchange Group (LSEG) recently published a job listing for the position of director of digital assets. This new role seeks an individual with a strong interest in digital assets, cryptocurrencies, and distributed ledger technology.
JasperThe global surge in reported crypto scams has sparked inquiries about the possible link between the growth of the cryptocurrency market and the escalation of fraudulent incidents.
Hui XinThe Bored Ape Yacht Club's former Social Lead, Shpend Salihu, has resigned after the resurfacing of racist and antisemitic posts from his past.
AaronIn the much-anticipated "Treehouse of Horror XXXIV" episode of "The Simpsons," the beloved animated series delves into the realm of blockchain and non-fungible tokens (NFTs). This marks a return to their comedic exploration of the crypto space, delivering an engaging parody with nods to well-known NFTs and artists.
JixuBlur's token had already been on a price surge, climbing from $0.15 to $0.27 over about three weeks, marking an 80% gain. However, things took an interesting turn when rival marketplace OpenSea announced a 50% reduction in its workforce. The news gave Blur's token an additional boost, increasing by 30%.
AaronShiba Inu developer, Kaal Dhairya, has reported a technical issue plaguing the self-custodial authentication system integrated into The Shib Magazine.
CatherineYuga Labs employee has resigned amid controversy surrounding past racially insensitive and antisemitic tweets, sending ripples through the NFT community. The incident has raised concerns about background screenings in the industry and brought past allegations against Yuga Labs back into the spotlight.
JasperThe ongoing legal skirmish involving Bitboy has intensified; he is determined to recover assets that were seized, including a Lamborghini that mysteriously disappeared.
KikyoAn Indian spy is currently facing serious allegations for leaking classified information about Indian Navy submarines and warships to Pakistani intelligence operatives for cryptocurrency, an act that could potentially lead to the death penalty.
JasperThe US Consumer Financial Protection Bureau aims to supervise non-bank digital wallets, emphasising enhanced consumer protections in the digital finance realm.
Hui Xin