The CEO of Ripple Explains How His Company Survives Bear Markets

Brad Garlinghouse, CEO of Ripple, commented on the latest cryptocurrency crisis, predicting that the sector will “shrink” in the near future.

In the long run, though, the executive remains optimistic. Cryptocurrencies, he believes, will become “an intrinsic part” of the financial system in the future.

Ripple has weathered prior bear market downturns

According to Garlinghouse, one of the oldest crypto firms by having experienced management, focused on the long term, and operating transparently.

While many crypto companies have halted hiring or begun to reduce their workforce, Ripple claims that after obtaining a “substantial” cash reserve, it would be able to expand its workforce even during the down market.

The Fed’s decision is awaited

Bitcoin came perilously close to falling below $20,000 earlier today before seeing a tiny rescue rally. Some believe that this will be the first bear market in which the cryptocurrency falls below the preceding bull cycle’s peak.

The Federal Reserve of the United States is set to adopt a 75 basis point rate hike on Wednesday, according to The Wall Street Journal. This would be the largest rate hike since 1994, as the central bank becomes more hawkish in its fight against out-of-control inflation.

While Bitcoin has largely prospered in a low-interest rate environment for the majority of its life, there are rising concerns that the Federal Reserve may smash the cryptocurrency ecosystem by ending the age of “free money.” By the middle of 2023, rates are predicted to reach 4%. When they were this high in 2007, Bitcoin had not yet been released.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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