Since the peak of an enormous bull run in 2021, the crypto’s value has collapsed by $2 trillion, resulting in what the crypto industry refers to as a “crypto winter,” or a period of a prolonged bear market. Bitcoin, the world’s largest digital currency, is down 65 percent from its November high of around $69,000.
The low point for cryptocurrency was reached on June 18. Since then, the sector has regained a $1 trillion market cap, prompting some, including FTX CEO Sam Bankman-Fried, to believe that the winter is finally over.
On Tuesday, Bankman-Fried appeared on Fox Business to discuss a variety of topics, including the rejected Voyager Digital Ltd buyout, the newly launched stock trading section of the FTX website, and the crypto winter, which he was asked if it was nearing its end.
It could be, said the billionaire. Ultimately, so much of this will be based on what happens in macro that it will be difficult to say for sure.
On a macro level, we saw a continued recovery in stocks at the end of the selloff, he added. I believe we are nearing the end of the crypto winter, and I believe we will see a recovery on the crypto side, Bankman-Fried said. It is noteworthy that the equity market bottomed on June 16, and the S&P 500 has since rallied nearly 12%.
The only forewarning to this, Bankman-Fried cautioned, is that if stocks continue to fall, I believe we’ll see more pain in crypto as well.