FTX CEO Sam Bankman Fried talks about what's behind the crypto and technology decline

Cryptocurrency markets, along with traditional markets, have been trending downward for most of the year as rising inflation continues to cause investor anxiety.

Sam Bankman FreedThe founder and CEO of cryptocurrency exchange FTX explained the sharp decline during a presentation on Thursday. Piper Sandler's “Global Exchange & Brokerage Conference.''

“Many venture capital firms have slowed their investments. Across the board, we've seen inflows slowing and outflows accelerating,” Bankman Fried said.

The Nasdaq has fallen more than 20% since the beginning of the year, but the world's oldest cryptocurrency Bitcoin BTC/USD It has fallen nearly 35% since the beginning of the year.

Accelerated outflows will actually only worsen the economic downturn, he said. The FTX CEO said that, like the Nasdaq, the decline in cryptocurrencies was due to the strength of the US dollar and changes in monetary policy.

The Federal Reserve has embarked on its most aggressive tightening cycle in more than 40 years as it seeks to curb rising inflation.

“This basically caused a positive revaluation of the U.S. dollar and therefore a negative move against the U.S. dollar against everything else,” Bankman Fried said.

Still, he is confident in the future of cryptocurrencies and believes they can have a real impact right now in terms of modernizing current financial technology.

In a CNBC interview after Bankman Fried's Piper Sandler conference presentation, the FTX CEO highlighted the current case for cryptocurrencies.

“I think there are a lot of things that blockchain and cryptocurrencies can help with in terms of modernizing payments, payments and remittances. Having a brick-and-mortar store of value, especially in countries that don't have good stores at the moment,” the bank said. Mann Freed said.

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$BTC Price Action: Bitcoin fell 0.25% in 24 hours and was trading at $30,281.60 at the time of publication on Thursday.

Photo: Eyvind Pedersen (from Pixabay)