Bitcoin rises 3.5% and again over 20,000 euros, FTX director expects the worst to be over – BTC Direct

Sam Bankman-Fried expects the worst of the crypto market to be behind us now. He does, however, have to make a small reservation: he did not expect it to be so bad, which insinuates that we might have to take his expectations with a grain of salt.

The price of Bitcoin is rising, the crypto market is having a hard time

Bankman-Fried is the CEO of the crypto exchange FTX and at the age of thirty is one of the youngest billionaires on the planet. In an interview with Reuters, he says he sees light at the end of the dark, dark tunnel (read: falling prices). While the bitcoin price may not reflect a dark tunnel in recent days, many crypto companies are struggling.

In the middle of the night, bitcoin has risen by 3.5% and is again worth more than 20,000 euros.

Although the price is recovering, there is no denying that there is chaos in the market. Three Arrows Capital and Voyager have since filed for bankruptcy, and Celsius and BlockFi are said to have liquidity problems.

What does Bankman-Fried know that we do not know?

Sam Bankman-Fried has a big finger in the game with the latter as his FTX gave the crypto loan company a $ 250 million loan after it became known that BlockFi was in trouble. If certain goals are achieved, FTX may even take over BlockFi, so BlockFi seems to be out of trouble at the moment. Voyager also received a lot of money from FTX, as much as $ 200 million, but to no avail given the bankruptcy petition.

Perhaps that is why he can assess with his inner knowledge that the worst is over.

$ 2 billion to the market

Bankman-Fried said his cryptocurrency exchange still has “a few billion” that can be used to help other cryptocurrencies that are experiencing financial difficulties. Other crypto companies have reached out, he said, adding that some of the smaller exchanges may still fail and be at risk of bankruptcy. But he did not mention names.

In January, FTX launched its subsidiary FTX Ventures, a $ 2 billion venture capital fund focused on investing in digital assets. FTX Ventures has already been used to help companies with liquidity, but not to provide assets (such as crypto).

Do companies need help?

There are critics who say that the companies that are not made for the bear market should fail and not be helped, but it is different when help comes from another market participant instead of the government. It is the market that sustains and regulates itself with this, instead of the taxpayer having to pay for the failure of risky business operations.

Bailouts and financial support are important to the health and longevity of the industry as a whole, says the crypto-billionaire. Since the crypto industry is relatively small and many companies are intertwined, the fall of a domino glasses can affect many companies. Somewhere someone has to remove or reinforce a domino.

Everything falls and stands with confidence

In May we saw Terra Luna’s fall, the value of their stablecoin terraUSD was completely lost and its currency LUNA crashed to 0. The company Terra fell and this hit Three Arrows Capital as this fund had taken a large position in the crypto LUNA. Three Arrows Capital had loans from Voyager Digital and was unable to meet them. That again prompted Voyager to file for bankruptcy yesterday.

In light of this uncertainty, Bankman-Fried does not want the public to lose hope. He says: “Consumers have confidence when things work out as advertised. It’s incredibly important, and when those things break down, it’s incredibly difficult to get that confidence back.”

Cryptocurrency is close to the bottom

In terms of where the market is heading in the short term, Bankman-Fried believes that crypto prices are close to or at the bottom. But he also acknowledges that there will be many macroeconomic factors that will affect the crypto industry that he obviously has no control over.

“I do not think it is an existential threat to the industry,” he said. “But I think it’s a lot worse than I expected.”

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