Sam Bankman-Fried, CEO of one of the biggest crypto exchanges in the world, FTX, gave his thoughts on the catalyst he believes will have the most impact on the current state of the crypto markets. He believes that some changes need to be done for crypto space to get out of this bear market.
Regulatory Agencies Could Help Crypto
During a recent interview with journalist Laura Shin for the Unchained Podcast, Bankman-Fried says while Bitcoin (BTC) has been yoked to the US dollar, the crypto market is becoming more stable.
“We’re not seeing any sort of continuous outflows. We’re not seeing acute pain in the same way that we were for the week to month after Terra LUNA and the Three Arrows [Capital] incident. Things are in a little of a holding pattern,” Bankman-Fried said.
A helping hand from regulatory agencies would help crypto break out of its current trends, says the FTX CEO.
“I think the thing that I could potentially see on the horizon that would have the biggest impact would be if we saw regulatory clarity, particularly in the United States. Regulatory regimes come out that allow the industry to operate with clarity in the country while protecting consumers – that’s been the biggest white whale for years, and I think we might be close,” he said.
Crypto Market Remains Under Macro Influences
Sam Bankman-Fried maintains that crypto markets remain subject to macro factors. “[Crypto] is going to be responsive to general macro environments, and that’s the position we’re in,” The CEO said.
“The big reason really is that what we’re seeing driving markets is changes in interest rates, which is leading to the strengthening and weakening of fiat currencies… If the dollar strengthens, it’s going to strengthen against Exxon. It’s going to strengthen against Amazon, and it’s going to strengthen against Bitcoin. When you have a weakening, you’re going to see the inverse. Because a lot of macro is being driven by moves in currencies, that’s going to move crypto prices against dollars,” he detailed.