The chief executive of digital asset derivatives exchange FTX is naming one catalyst that he thinks could have the biggest impact on the current state of the crypto markets.
In a new interview on the Unchained Podcast with journalist Laura Shin, Sam Bankman-Fried says that the crypto markets remain at the mercy of macro forces.
“[Crypto] is going to be responsive to general macro environments, and that’s the position we’re in. 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.”
While Bitcoin (BTC) and other digital assets have been succumbing to the strength of the US dollar, Bankman-Fried says that he’s starting to see some stability in the crypto markets.
“We’re not seeing 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.”
According to the FTX CEO, crypto could break out of its current trend if it gets a helping hand from regulatory agencies.
“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.”
IDon't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Quardia/Sensvector