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FTX CEO Sam Bankman-Fried comments on Bitcoin market amid Ukraine crisis

Updated: Aug 31, 2024
Published: Feb 24, 2022
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Sam Bankman-Fried, CEO of crypto exchange FTX, has commented on the decline of BTC after Russia declared war on Ukraine early Thursday.

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He believes BTC's decline was not a surprise

In a Twitter post on the market scenario, Bankman-Fried said that the war has led to a shortage of money in the market, resulting in a sell-off in both traditional and crypto markets. The decline in BTC prices is also attributed to the growing correlation with the Nasdaq and the S&P 500, which recently hit a two-year high. Bankman-Fried pointed to the destabilization of currencies in Eastern Europe and suggested that investors in Eastern Europe may be looking for alternatives due to the invasion of Ukraine, which could make BTC an obvious choice.

He categorized investors' mindsets into two types: fundamental and algorithmic. He explained that fundamental investors look at market conditions and sentiment, while algorithmic investors prefer data. Market fundamentals point to a buying opportunity as BTC is a crisis hedge, while algorithmic investors looking at the data and BTC's correlation with the stock market are more likely to sell. According to this theory, the back and forth between fundamental and algorithmic investors has caused the current Bitcoin market to stop halfway.

BTC price fell as Ukraine situation worsens

The price of Bitcoin fell sharply early Thursday as reports spread of an intensified attack by Russian forces in Ukraine. According to market data, the price of BTC was trading just below $37,000 when media reports and posts on social media began to spread showing videos of missile attacks, including on the main airport in the Ukrainian capital, Kiev.

Bitcoin's price hit a local low of $34,522, according to Coingecko. At the time of writing, the price has recovered slightly to $35,135.29. Stock indexes in Asia also fell, and futures for U.S. markets indicated sharp declines at the start of trading

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