While many crypto analysts and traders are looking forward to better trading days, Sam Bankman-Fried, FTX founder and a crypto billionaire is of the opinion that Bitcoin will soon see a positive trend.
In a Bloomberg interview on David Rubenshtein episode, Bankman-Fried claimed that he was not worried when Bitcoin fell below $30,000 in May.
However, the King currency didn’t stop there and after Federal Reserve Chairman Jerome Powell’s speech, Bitcoin even lost $20,000 level. Powell had claimed that the US central bank will stick to its hawkish statement.
When the host asked Bankman-Fried if the crypto market will see a recovery anytime soon, he said that along with the Crypto market, the stock market has also dropped as a result of macroeconomic factors.
According to him, the stock market collision was preceded by the collapse of the cryptocurrency market, so if the stock market recovers, crypto will too.
Bitcoin Bear Cycle Will Not Last Long
In the month of May when Bitcoin began its bearish cycle, the FTX founder expected the price action to be negative and the currency did stick to that with many crypto related businesses collapsing.
He also asserted that the present bearish momentum will not last long but the crypto market will fall back if the stock market does. The same was seen in 2020 when Nasdaq index dropped by 30-40% and Bitcoin followed declining below $10,000.
Meanwhile, a few of the market experts believe that the flagship currency has already hit the bottom as the currency plunged by 6% on August 26 after Jerome Powell’s speech.
Traders think that the BTC fall was relatively low given such bearish circumstances. Cryptocurrencies experienced a much steeper decline during past crises than tech stocks. Now Bitcoin is displaying some strength, which analysts describe as “a positive indicator.
At the time of reporting, Bitcoin is trading at $19,810 after a fall of 1.56% in the last 24hrs.