Has the crypto sector crash bottomed out? Sam Bankman-Fried, the CEO of FTX thinks so and feels that the liquidity crunch in the crypto sector is finally over. In an interview with Reuters, Sam Bankman-Fried said that prices have reached a fair degree of stability and the majority of the crisis is now over. Sam’s views were also endorsed by CryptoGodJohn, a major crypto trader and influencer. He has also confirmed that the stability of the prices points that the worst is over.
Also, short selling data for the month of June point out that the crypto crisis has bottomed out. Last month the US short-selling in stocks and cryptocurrencies was month’s $ 60 billion. This month the figure is $20 billion. This is a clear indication that the worst could be over for the crypto sector.
As per a report by Forbes a crashing crypto market would have convinced the short-sellers to expect a rebound and lower their positions. The crypto sector has already lost 75% of its values and the investors are still wary of any further reductions.
Has The Crypto Sector crash bottomed out?
JP Morgan in its latest analysis has hinted that the worst could be over and recovery can be expected. Pointing out rescue measures and financial help received by the troubled firms from major companies like FTX could kick start the recovery process.
Somewhat similar sentiments were expressed by Bloomberg’s Senior Commodity Strategist Mike McGlone who also indicated that the worst is over. A similar drawdown happened in 2018 and the risk vs reward indicator is tilting toward responsive investors.