FTX CEO and founder Sam Bankman-Fried recently spoke to Bloomberg on the current crypto situation. According to him, the next strong support for Bitcoin would be $20,000 or $25,000. The CEO believes that the range correlates with the fast rise in open interest on Bitcoin options contracts.
“I think around 20 – 25k you are just going to see a lot of people starting to buy even without having huge amounts of conviction.”
Bankman-Fried also says that Bitcoin is very unlikely to plunge to extreme lows. He says this is because the buying power patiently waiting for Bitcoin after $10,000 is very high.
The CEO also discussed crypto regulation and licensing as a way to fight illegal activity and tax evasion. Bankman-Fried believes that creating a proper legal framework strong enough to cover companies that have digital asset transactions may take up to 10 years. However, he is of the opinion that regulation and licensing are important.
Bankman-Fried also spoke on the current downturn in the crypto market. According to him, the markets recently climbed significantly because of increasing leveraged positions on crypto exchanges. He also added that NFT auctions pulled their weight as they pushed market capitalization much higher. The CEO then said that the current downturn is because of market saturation, and not necessarily analytical fundamentals.
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