Sam Bankman-Fried is cofounder and CEO at FTX. FTX
Sam Bankman-Fried stated that every time cryptocurrency plummets, it makes the market less chaotic.
He told Cointelegraph that each time it happens, it's less of a show for the space.
He said that liquidations, cashing out, and de-risking were some of the factors that contributed to this week's fall.
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In an interview published Thursday, Sam Bankman-Fried, a crypto billionaire, stated that every sell-off in cryptocurrency markets has a less disruptive impact and that the bounceback is much easier.
Cointelegraph spoke with the CEO and founder of crypto exchange FTX about Tuesday's 17% plunge in bitcoin. This was accompanied by declines for other digital assets.
He said that he believes it to be a classic idea in the video interview. "There is a lot of bullishness within the space. It has been there for some time."
Sam Bankman-Fried stated that sometimes there is a simple effect in which people who are bullish see things going up.
"But, there are times when things can go down and you get liquidations, margin calls, some people cashing in, de-risking, and some of the hot water leaving the space. This is what we have seen over the past few days."
According to CoinDesk data, Bitcoin traded at $46,137 last week. This was a decrease of 8% over the past week but an increase of 60% so far this fiscal year.
The FTX boss said that the trend in crypto markets is to be less chaotic as they sink. He cited slumps in 2020, 2021, and bitcoin's 13% plunge on May 19, this year.
He said, "Each time it happens, it's less of a show for the space."
People who were interested in crypto last year said that it was a "really frightening moment" when the markets crashed and bitcoin fell below $4,000 and lost half of its value. Bankman-Fried added.
"That's so much different from May a few months back. He noted that it felt like there was a lot of cooling off in the space.
"Now, you can see the crash from a few days ago. We're already half way back up and market sentiment seems to be quite positive again.
He said that liquidations of around $5 billion were responsible for the majority of the week's declines.
He said that crypto market liquidity is still deeper, and hot air has become more stable with sustained inflows. He said, "I think that's been an encouraging trend for markets."
Read More: Five crypto trading experts outline where the market might go next after the 'Bitcoin Day’ crash. And how solana managed the escape from the bloodbath.