According to the CEO of the FTX cryptocurrency exchange, the cryptocurrency market’s fall was caused by inflation in the United States and a raise in the FRS interest rate.
The FRS, according to Sam Bankman-Fried, is in a tough position when it comes to containing inflation in the United States. The greatest rate rise in 30 years affected many markets, including conventional finance.
In addition, the crisis related to the acts of numerous significant firms – Terra (collapse of LUNA), Celsius – negatively impacted cryptocurrencies (freezing the withdrawal of funds). The market is being regulated more severely by legislators, which has a detrimental impact on the situation.
Many firms, including FTX, are responsible for the future of cryptocurrencies, according to Bankman-Fried. He argues that intervention is required to halt the collapse, even if these major corporations were not initially a fault.