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$25,000 Is the Next Strong Support, According to FTX Founder and CEO

u.today 21 July 2021 13:32, UTC
Reading time: ~2 m

In a recent interview with Bloomberg, FTX founder and CEO Sam Bankman offered his thoughts and opinions on the current situation on the crypto market. Bankman also addressed digital assets regulations that have been a topic of discussion among both EU and U.S. regulators.

FTX Founder and CEO @SBF_Alameda speaks with @RishaadTV and @HaslindaTV on his outlook for crypto markets and regulation.

The company recently completed a series B fundraising round of $900 million that values them at $18 billion https://t.co/zz5XrblVv5 pic.twitter.com/9qkJlPK4tG

— Bloomberg Crypto (@crypto) July 21, 2021

Current market situation

Speaking about the market, Bankman pointed out that Bitcoin will not reach extreme lows since there is a large volume of buying power awaiting Bitcoin after the $10,000 mark. The next strong support for the leading cryptocurrency is $25,000 or $20,000 in Bankman's view. The FTX CEO's belief that the range of $25,000 to $20,000 will become a strong support for BTC also correlates with the rapidly increased open interest on Bitcoin's option 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.

Digital assets regulation

Another topic of discussion was the regulator's attempt to license the crypto industry for the purpose of fighting tax invasion and financing of illegal activities. In Sam's opinion, in order to make crypto a licensed industry, it will take from 5 to 10 years to create a legal framework and solution for companies that work with digital assets. But at the same time, he believes that licensing and regulation are the future of cryptocurrencies.

Recent crypto bull run and downfall

Regarding the recent negative events on the crypto market after a 450% bull run, Bankman pointed to the fact that most of the growth on the market was fueled by a large amount of leveraged positions on exchanges. In addition to the over-leveraged market, NFT auctions have pulled market capitalization even higher without any non-speculative support. In Bankman's opinion, the current downtrend on the crypto market is caused by market oversaturation but not fundamentals.

In the end, Bankman said that institutional investors have already shown up on the market. But due to the fact that they have started to buy digital assets after Bitcoin and most cryptocurrencies topped out, we will only be able to see their presence after a few years.

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