Crypto Billionaire Blames Fed for Downturn

　　Cryptocurrencies are experiencing a major market fall, and the Federal Reserve is to blame, according to Sam Bankman-Fried, CEO of the FTX platform.

　　“The Fed has been the primary driver of this,” Bankman-Fried remarked.

　　In an interview with NPR, the FTX CEO indicated that the Fed is aggressively raising interest rates to combat excessive inflation, which has resulted in a “recalibration” of risk assumptions.

　　Bankman-Fried acknowledged the difficulty of the Fed's mission, saying it is “stuck between a rock and a hard place.” However, the billionaire noted that the central bank's decisions in the next months will have a significant impact on his commercial prospects.

　　In an effort to counteract excessive inflation, the Fed hiked interest rates by three-quarters of a percentage point last week. Financial markets have already been extremely volatile in recent months, with cryptocurrencies in full meltdown mode.

　　“Markets are literally terrified. Wealthy people are terrified.” Bankman-Fried has been mentioned.

　　The billionaire said that the fall might impact crypto regulation, which is now being considered in the United States. He predicted that there will be increasing scrutiny of how leverage and loan operations in the crypto business are used, as well as how transparent firms are about potential risks.

　　What Does This Mean for Crypto Investors？

　　But what can investors expect, and how long will higher interest rates affect the markets？ So far this year, the Federal Reserve has hiked interest rates three times: in March, May, and now. The Federal Reserve hiked interest rates by 0.75 percentage point on June 15th, the third increase this year and the highest since 1994.

　　That is not likely to be the year's final increase. The Fed is likely to hike interest rates many more times this year as it attempts to contain inflation.

　　Higher interest rates have already had an impact on cryptocurrency, stocks, commodities (such as gold and oil), and a variety of other assets in 2022.

　　While the Fed has hiked rates three times this year, it is clear to see when capital markets traded higher than they are now and took note that the Fed was serious about tightening monetary policy in November last year.

　　While crypto prices have fallen along with other risky assets, several commodities, like wheat, oil, and nickel, have risen.

　　Cryptos, like other risky assets, fell in response to limited liquidity when the Fed announced in November that it would begin reducing its bond purchases and signaled that higher benchmark interest rates were on the way.

　　While crypto-assets are undoubtedly experiencing the effects of increasing interest rates, their prices are anticipated to be net positive by the end of the year. Because any short-term dips caused by rising interest rates will be countered by increased retail and institutional active trader adoption of the asset class.

　　The fact that some commodity prices have surged may hamper how quickly the Fed hikes interest rates. Some of these increases can be attributed to Russia's invasion of Ukraine.

　　With interest rates rising, long-term investors may see it as a perfect moment to buy some quality investments at cheap prices.

　　As a reminder, WikiBit is ready to help you search the qualifications and reputation of projects in a bid to protect you from hidden dangers in this risky industry!

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