FTX founder and CEO Sam Bankman-Fried provided rare insights into the present state of the cryptocurrency sector as well as regulatory problems.
FTX Founder And CEO Talks About The Current Market Condition
In a recent interview with Bloomberg, FTX founder and CEO Sam Bankman shared his thoughts and ideas on the crypto market’s current conditions. Bankman also addressed digital asset rules, which is a cause of concern among EU and US authorities.
— Bloomberg Crypto (@crypto) July 21, 2021
In terms of the market, Bankman believes that Bitcoin should not go through severe lows since there is a significant volume of purchasing power waiting for Bitcoin once it reaches $10,000.
According to Bankman, the next significant support level for the top cryptocurrency is $25,000 or $20,000 per coin. The FTX CEO’s opinion that the $25,000 to $20,000 area will become a solid support level for BTC corresponds with the fast increasing open interest in Bitcoin options contracts.
“I believe that at 20-25k, a lot of people will begin to purchase even if they do not have a lot of conviction.”
Regulation Of Digital Assets
Another point of debate was the regulator’s attempt to regulate the crypto business to tackle tax evasion and the financing of illegal acts.
According to Sam, it will take 5 to 10 years to develop a legal framework and solution for firms that operate with digital assets to make crypto a regulated sector. At the same time, he feels that cryptocurrency certification and regulation are the way of the future.
Recent Crypto Bull Run And Subsequent Down Market
Concerning the recent bad occurrences in the crypto market following a 450% bull run, Bankman pointed out that the majority of the market’s expansion was driven by a significant number of leveraged positions on exchanges.
In addition to the over-leveraged market, NFT auctions have increased market capitalization without any non-speculative support.
The FTX Founder And CEO said that the current crypto bear market is due to market oversaturation rather than fundamentals.
Finally, Bankman stated that institutional investors have begun to enter the market. However, because they began purchasing digital assets after Bitcoin and most cryptocurrencies had peaked, we will only see their presence in a few years.