FTX CEO Sam Bankman-Fried blames rising interest rates for this crypto crash.

June 20, 2022

According to the crypto billionaire Sam Bankman, the core reason for this crypto downturn has been the Federal Reserve.

The Fed is raising interest rates aggressively to fight high inflation, which has led to a "recalibration" of expectations of risk, FTX CEO told NPR.

The Federal Reserve raised interest rates by 0.75 percentage point, its largest hike since 1994.

Cryptocurrencies often cited as a hedge against inflation have fallen in accordance with the stock market in the recent months.

Bitcoin, currently trading at just above $20,000, is down nearly 58% this year.

Crypto exchanges Coinbase and Gemini are laying off employees to cope up with the ongoing bearish market conditions.

The crypto market is expected to continue to fall in the short term.