The head of the FTX exchange, Sam Bankman-Fried, said that cryptocurrencies are still at the mercy of macroeconomic forces that either weaken or strengthen the crypto market.
Cryptocurrency derivatives marketplace CEO Sam Bankman-Fried said that the digital asset market is reacting sharply to the policies of the US Federal Reserve System (FRS):
“The main reason is that changes in interest rates lead to the strengthening, then to the weakening of fiat currencies. Now the dollar is strengthening not only against Amazon, but also against bitcoin. When the dollar starts to fall, BTC and stocks will start to rise.”
He added that since most of the macroeconomic indicators are determined by the movement of currencies, this leads to a change in the price of the cryptocurrency against the dollar. The FTX CEO noted that he is starting to see some stability in the cryptocurrency markets lately.
“We don’t see continuous outflows like during the week or month after the incident with Terra and Three Arrows Capital. Investors and companies are on standby,” he said.
According to Bankman-Fried, the cryptocurrency could get out of its current trend if it gets help from regulators:
“The biggest impact will be regulatory clarity, especially in the US. The emergence of regimes that will allow the industry to operate smoothly in the country, while protecting consumers – this would be the biggest white whale in recent years. I think we are close to having it.”
Earlier this month, the US Financial Stability Board called for greater oversight of the industry. According to US regulators, cryptocurrencies can pose a threat to the US financial system, so you need to “regulate accordingly” the scope of digital assets.