- Brett Harrison reveals that VCs remain interested in the crypto space and new companies are coming into the space.
- He expects volatility to continue till there is more institutional money.
- Bitcoin has lost about 45% of its value compared to its all-time high.
In an interview with CNBC TV, FTX US president, Brett Harrison, disclosed his belief that Bitcoin prices will remain volatile in the foreseeable future. He said while this might be the case, it doesn’t spell doom for the crypto market.
Capital Influx And Rising Startups
Speaking after the company raised $400 million at an $8 billion valuation, Brett Harrison noted that VCs were investing heavily in crypto despite the recent decline in the value of a lot of crypto assets. Harrison noted that many of these assets were far away from their all-time high, adding that the market showed a general risk-off sentiment but money was still pouring in.
Harrison noted that the influx of capital, new companies, and infrastructure around the market meant that they were still optimistic about the future. He added that there could be no certainty about market lows as the markets were not so predictable in the short term. The executive noted that until more institutional money comes into the crypto space, Bitcoin and other cryptocurrency assets would experience more volatility.
“Bitcoin and crypto, in general, are still very volatile assets. I think until there is more institutional money coming into crypto, we are going to continue to see markets be somewhat unstable in terms of their volatility. Which means, along with those record-breaking highs, we are going to see low downturns as well.”
Harrison said that the blip in prices will not be a long crypto winter. It was his belief that the influx of institutional interest and capital would eventually have some positive impact on the price action.
On the impact of the Fed on the crypto markets, Harrison revealed that when the Fed released information that inspired a risk-off sentiment, the crypto markets were bound to be impacted. He claimed that this was a direct result of the capital allocation to the crypto market, noting that the more the market is traded, the stronger the correlation becomes.
The State Of The Bitcoin Market
Last week, Bitcoin closed below its previous weekly lower high, starting this week off at slightly below $33,000. However, this week has seen the market try to reclaim the $40,000 price point, as it is currently trading at about $37,687 on mainstream exchanges.
The asset has fallen nearly 45% in value from its all-time high in early November of nearly $69,000. Several pundits have attributed the decline to profit-taking and a lack of regulatory clarity.
It should be noted that another regulatory blow may be in the works for the primary cryptocurrency. Russia’s Central Bank has recommended the ban of the asset class and the mining of the asset. All of this is happening as Congress reviews the energy consumption and environmental impacts of Bitcoin mining.
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