FTX CEO weighs in on Bitcoin market outlook amid Ukraine crisis
The world woke up to a “sea of red” which was not necessarily limited to the financial markets, as Russia declared war on Ukraine early Thursday.
The traditional financial markets along with the crypto markets were sliding bearish for the past week and saw a rapid decline early on Thursday. Apart from the crude oil prices which jumped to an eight-year high above $100, the majority of the stocks have lost over 5%.
The Russian invasion on Feb. 24 triggered the bears leading to a $500 billion crypto market sell-off, where the majority of the cryptocurrencies lost critical support to trade at a three-month low. The crypto market cap saw a 10% decline during early morning Asian trading hours, falling below the $1.5 trillion mark.
Bitcoin (BTC) is considered an inflation/crisis hedge and many expected its price to show resilience at a time of the crisis, however, Sam Bankman-Fried, the CEO of global derivative and spot crypto exchange FTX, believed BTC decline was no surprise.
4) It makes sense that stocks are down. War is, generally, bad.What should BTC be doing here?Well, on the one hand, if the world gets shittier, people have less free cash.Basically, selling BTC--along with stocks, etc.--to pay for war.
In a Twitter thread addressing the market scenario, Bankman-Fried said that the war has created a cash crunch in the market leading to the sell-off in both traditional as well as crypto markets. The price decline in BTC is also attributed to its growing correlation with Nasdaq and S&P 500, which has reached a two-year high recently.
Bankman-Fried noted the currency destabilization in Eastern Europe, suggesting that investors in Eastern Europe could look for alternatives due to the Ukraine invasion, which could make BTC an
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