The CEO of cryptocurrency exchange FTX believes that his business is now dependent on the decisions that the US regulator will make in the coming months.
Sam Bankman-Fried said in an interview with NPR that the main driver of the recession in the cryptocurrency markets is the tightening of the fiscal policy of the US Federal Reserve System (Fed). According to Bankman-Fried, FTX can, if not stop the decline in the crypto markets, then at least slow it down:
“I feel that we must seriously think about intervening, even if it is at a loss for. We need to stop the spread of the infection. Even if we weren’t so closely associated with the crypto industry, I think we should do something that will benefit the ecosystem.”
According to the head of FTX, the main culprit of the recession is the Fed – because of its decision to raise the key rate by 0.75%, which is the largest increase since 1994. This had a domino effect that reached digital currencies as well. When fiscal policy tightens, people start selling off assets they see as risky, says Bankman-Fried:
“The markets are literally scared. People with money are afraid.”
The businessman understands the complexity of what the central bank is trying to do: now the Central Bank is stuck between a rock and a hard place. Now, however, he and many other businessmen in the industry are waiting for new decisions from the Fed in order to build a further plan of action, says Bankman-Fried.
Earlier, the CEO of the crypto exchange Coinbase, Brian Armstrong, announced the reduction of 1,100 staff members. According to him, during the rise in the cryptocurrency markets, the exchange hired too many employees.
Source: Bits
I’m James Harper, a highly experienced and accomplished news writer for World Stock Market. I have been writing in the Politics section of the website for over five years, providing readers with up-to-date and insightful information about current events in politics. My work is widely read and respected by many industry professionals as well as laymen.
