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FTX CEO blames Federal Reserve for bear market, will step in to prevent ‘contagion’

CryptoWhale
CryptoWhale
FTX CEO Sam Bankman-Fried claims the recent 70-90% crash in the crypto markets is a direct consequence of the Federal Reserves’ decision to hike interest rates.

Anytime something goes well for Bitcoin, blame it on the direct effect of innovation and widespread adoption of digital assets.
Anytime something goes wrong for Bitcoin, blame it on the evil banks and Federal Reserve… that seems to be the game plan for many of these crypto Influencers and exchange executives.
On June 18th, before Sam Bankman-Fried made his statement, I tweeted the following as I knew they would soon lay blame for the correction on something external, rather than admit the truth of the faltering demand, lack of innovation, whale dumping, lack of utility, and even the dangerously low adoption rates.
CryptoWhale
#Bitcoin crashing has 1% to do with the Federal Reserve, Banks, or Whatever BS the maxis blame it on.

And 99% to do with Retail Hype drying up, Whales Dumping, and Tether not printing anymore to manipulate prices.
Fed Rate Hike happened after Bitcoin dropped 74%
Fed Rate Hike happened after Bitcoin dropped 74%
SBF stated in his interview that he understands the Federal Reserve has little choice in such a difficult situation, but the Fed’s aggressive moves mean that the crypto market trajectory will directly depend on the watchdog’s decisions in the coming months.
The Fed recently raised interest rates by the most significant margin in the last 28 years — 75 basis points — on June 15 after U.S. inflation hit its highest level in 40 years.
According to the crypto billionaire:
Literally, markets are scared. People with money are scared.
The crypto market cap has plunged in recent weeks from $3 trillion in 2021 to below $1 trillion. Every major digital asset like Bitcoin, Ethereum, Solana, and others has shed over 60% of its value since all-time-highs in 2021.
Meanwhile, crypto firms like Three Arrows Capital, Celsius, and Babel Finance face liquidity issues amid the current market turmoil.
Crypto platforms like Coinbase, Gemini, Crypto.com, and several others have announced intentions to downsize due to the macroeconomic situation.
SBF looks to prevent crypto contagion
Speaking on this development, SBF said that his trading firm, Alameda Research, will consider stepping in to prevent a contagion spread within the crypto sector.
SBF also used the opportunity to clear that his firm was not responsible for the severe liquidity shortage threatening some crypto companies.
However, he believes that his firms:
Have a responsibility to seriously consider stepping in, even if it is at a loss to ourselves, to stem contagion.
According to SBF, the current liquidity issue is a problem for the whole crypto industry, and companies in the space must do what is healthy for the ecosystem.
He added that the crypto industry would face more scrutiny from regulators on how leverage is used and if the companies adequately communicated the dangers.
FTX has previously provided Japanese cryptocurrency exchange Liquid with $120 million in funding in 2021 when it was short on liquidity for about $100 million, so there is precedent for such occurrences.
FTX & Market Manipulation
Bankman-Fried is no stranger to accusations of market manipulation. In 2019, a lawsuit was filed accusing Bankman-Fried, FTX and Alameda of running a RICO enterprise. The plaintiff (BMA LLC), who has also sued other exchanges for market manipulation, said the defendants, under the direction of Sam Bankman-Fried, tried to use Binance to dump hundreds of BTC calculated to cause an artificial price movement which would trigger cascading liquidations of customers on Binance and other exchanges, including FTX.
According to the suit, Binance’s own manipulation detection systems prevented the attempt, but the defendants have attempted similar moves on other exchanges “in a long-running, continuing enterprise engaging in a pattern of racketeering activity.” Binance’s Changpeng Zhao seemingly confirmed the attempt at the time, but after talking with the then-unnamed party said that it was accidental on their part. Yeah, right!
Alameda took to a Medium blog to blast the litigation, calling it an inaccurate nuisance suit. The same blog was later updated to claim that it had been successfully dismissed; however, records showed that the suit was voluntarily dismissed with prejudice—which almost always means that an out-of-court settlement was reached.
Sam’s deep ties with Binance, Tether, and other shady entities show how he plays a clear role in the manipulation of the crypto markets. The fact he stated his firm would “step in to prevent contagion” sounds just like what the Federal Reserve would say for the traditional financial markets.
Crypto is supposed to go against this idea of entrusting unprecedented power in the hands of the top 0.000001%. I think it’s wrong for SBF to blame this crash on the Federal Reserve, when the true cause is the hype drying up and the collapse of Stable coins, and Ponzis like Celsius, Luna.
By no means am I defending the Federal Reserve, In fact, they are largely responsible for the stock market bubble, but to lay total blame on them just simply isn’t true. The blame should be on the manipulators like Tether, Binance, FTX, and Bitfinex who are working together to artificially manipulate prices, and screw over retail.
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