Sam Bankman-Fried Says Every Time A Sell Hits It’s Less Of A Crypto – And Sentiment Has Already Turned Positive After This Week’s Plunge | Currency News | Financial and business news

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Sam Bankman-Fried, Co-Founder and CEO of FTX.

FTX

Sam Bankman-Fried said that every time cryptocurrencies tumble, it just gets less messy for the market. “Every time that happens it’s a lot less of a shit show for space,” he told Cointelegraph in an interview Thursday. Some of the factors that drove this week’s decline are liquidations, cash inflows and risk reduction, he said. Sign up for our daily newsletter, 10 things before the opening bell here.

With each sell off that hits the cryptocurrency markets, the impact becomes less disruptive and the rebound is easier, cryptocurrency billionaire Sam Bankman-Fried said in an interview released Thursday.

The founder and CEO of the FTX crypto exchange shared his thoughts with Cointelegraph on Tuesday’s 17% drop in bitcoin, which was accompanied by a drop in other digital assets.

“I think it’s a classic thing,” he said in the video interview. “There is a ton of optimism in space. There has been a while.”

“Sometimes there’s just a direct effect where when people are optimistic things go up,” Sam Bankman-Fried said.

“But there are also times when, if things start to go down, you get closeouts, you get margin calls, you get cashouts and risk reduction, you get a bit of hot air leaving the business. space. And that’s what we’ve seen in the last few days. “

Bitcoin was last trading at $ 46,137, down 8% last week, but still up 60% so far this year, according to data from CoinDesk.

That said, the FTX boss suggested that the tendency is for crypto markets to be less chaotic when they start to sink. He pointed to the declines in 2020 and 2021, especially when bitcoin fell 13% on May 19 of this year.

“Every time that happens, it’s a lot less of a shit show for space,” he said.

For people who were interested in crypto last year, it was a “really scary moment” in March 2020 when the markets crashed and bitcoin lost half of its value and fell below 4 $ 000, Bankman-Fried said.

“It’s really, really different from what I felt a few months ago in May. It was like a lot of cooling in space,” he noted.

“Now you look at the crash of a few days ago. Frankly, we’re already halfway there, and I think the market sentiment is already pretty positive again.”

The crypto billionaire added that he believed liquidations worth around $ 5 billion were responsible for the majority of the declines this week.

Still, the liquidity of the crypto market has gotten deeper and the hot air has become less overheated with more sustained inflows, he said. “I think this is a healthy trend for the markets,” he added.

Read more: 5 Crypto Trading Experts Explain Where They Think The Market Could Head After ‘Bitcoin Day’ Crash – And How Solana Managed to Escape the Bloodshed

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