The cryptocurrency has struggled in recent weeks, with investors losing a huge chunk of their money during that period.
The cryptocurrency market has shed nearly $300 billion over the past week. The total crypto market cap dropped from $1.5 trillion last week to currently stands above $1.2 trillion.
Sam Bankman-Fried, the CEO of FTX crypto exchange, is confident that the market is not going to zero. In a recent interview with Fortune, Bankman-Fried said the cryptocurrency market would recover along with stocks.
The FTX CEO saw his net worth decline by nearly 50% in recent weeks, and he is now worth around $11 billion, according to Bloomberg’s Billionaires Index. He said;
“Crypto markets have mostly stabilized, modulo whatever happens in traditional markets. So if stocks recover, I would expect similar in crypto. If stocks keep crashing, so might BTC.”
Several cryptocurrency experts have lamented in recent weeks that the crypto market’s performance mirrors that of the United States tech stocks. With the NASDAQ 100 stocks currently underperforming, the crypto market has been in a bearish trend too.
According to The New York Times, the 30-day average of the Bitcoin-Nasdaq score has approached an exact one-to-one correlation since January 1 and reached 0.82 earlier this week.
The stock and crypto markets have been in sync in recent months, and the trend could continue for a while.
The Terra crisis further affected the cryptocurrency market, with billions of dollars wiped out from the project. The Terra blockchain has officially halted, and the broader market is now on an upward trend.
At press time, Bitcoin is trading above the $30k resistance level again while Ether maintains its price above $2,000. The total cryptocurrency market is close to $1.3 trillion and could rally higher over the next few days if the recovery mode continues.