FTX founder and CEO gave his exclusive insights on the current situation on the cryptocurrency market and regulatory issues
In a recent interview with Bloomberg, FTX founder and CEO Sam Bankman offered his thoughts and opinions on the current situation on the crypto market. Bankman also addressed digital assets regulations that have been a topic of discussion among both EU and U.S. regulators.
— Bloomberg Crypto (@crypto) July 21, 2021
Current market situation
Speaking about the market, Bankman pointed out that Bitcoin will not reach extreme lows since there is a large volume of buying power awaiting Bitcoin after the $10,000 mark. The next strong support for the leading cryptocurrency is $25,000 or $20,000 in Bankman’s view. The FTX CEO’s belief that the range of $25,000 to $20,000 will become a strong support for BTC also correlates with the rapidly increased open interest on Bitcoin’s option contracts.
I think around 20-25k you are just going to see a lot of people starting to buy even without having huge amounts of conviction.
Digital assets regulation
Another topic of discussion was the regulator’s attempt to license the crypto industry for the purpose of fighting tax invasion and financing of illegal activities. In Sam’s opinion, in order to make crypto a licensed industry, it will take from 5 to 10 years to create a legal framework and solution for companies that work with digital assets. But at the same time, he believes that licensing and regulation are the future of cryptocurrencies.
Recent crypto bull run and downfall
Regarding the recent negative events on the crypto market after a 450% bull run, Bankman pointed to the fact that most of the growth on the market was fueled by a large amount of leveraged positions on exchanges. In addition to the over-leveraged market, NFT auctions have pulled market capitalization even higher without any non-speculative support. In Bankman’s opinion, the current downtrend on the crypto market is caused by market oversaturation but not fundamentals.
In the end, Bankman said that institutional investors have already shown up on the market. But due to the fact that they have started to buy digital assets after Bitcoin and most cryptocurrencies topped out, we will only be able to see their presence after a few years.