Mashable: A "recalibration" of risk expectations has occurred as a result of the Fed's aggressive interest rate increases to combat excessive inflation, according to Bankman

Cryptocurrencies have had a rough few months, and the CEO of one of the world's biggest crypto exchanges says the Federal Reserve is to blame.

Sam Bankman-Fried, CEO of FTX, a platform for trading digital currencies, says that "the Fed has been the main force behind this."

Bankman-Fried told NPR that the Fed's aggressive interest rate hikes to fight high inflation have caused people to "recalibrate" their expectations about risk.

As the billionaire put it, it's clear to him that his government is stuck between a "rock" and a "hard place." On the other hand, Bankman-Fried said that what the Fed does in the coming months will have a big effect on his company's forecast.

This week was the first time since 1994 that the Fed raised interest rates. The end of the era of cheap money is coming up quickly, which is making financial markets nervous and cryptocurrencies crash. Bankman-Fried says that "the markets are scared." "People who make money are scared."

Bitcoin, a well-known digital currency, dropped by almost 20% last week and kept going down over the weekend. It's worth about half as much as it was in January. Several other cryptocurrencies have dropped even more quickly. In the same time period, Ether has dropped by almost 70%.

People who have invested in cryptocurrencies for the first time in the last few years are the most worried about this. In 2021, the total value of all cryptocurrencies is expected to reach $3 trillion. This is because the industry is making a big push to bring in new investors and raise its profile.

Babel Finance, a crypto lender, stopped bitcoin withdrawals and deposits for a short time on Friday because of "extraordinary liquidity challenges." Another lender called Celsius Network has already stopped withdrawals and transfers. In his statement, he said that it was "a tough time." Celsius said it made the choice "to stabilize liquidity and operations while we take steps to keep and protect assets." Several state agencies are now looking into what the company did.