Sam Bankman-Fried says it's likely crypto is in a slowdown and not going to stay ranged lower for long, especially with the Fed rate hikes in the picture.
The FTX crypto exchange co-founder and crypto billionaire believes cryptocurrencies are in a “slowdown” that might be succeeded with a fresh upside.
According to Sam Bankman-Fried, cryptocurrency’s market struggles since last November may not be a crypto “winter” but an "autumn," suggesting a bounce is likely in the next few months.
In comments cited by Insider, Bankman-Fried notes that despite what has been an extended slowdown, the crypto market still attracts a lot of interest that could help spur a fresh rally.
Also likely to remain key to the digital asset market is the sentiment around the Federal Reserve interest rate hikes and broader tightening cycle, the FTX chief noted.
Fears of a crypto winter heightened when Bitcoin fell more than 50% from its all-time high around $69,000, with monthly losses in January hitting more than 20% to add to the outlook. While the monthly performance for January saw BTC retest support levels around $33,000, a decent bounce has seen the cryptocurrency test resistance levels above $46k.
At the moment, BTC-USD is changing hands near $44,300, with gains this week tempered amid stock market declines on fears of a Russian invasion of Ukraine.