Grayscale Releases Optimistic Statements Regarding Prices in the Bitcoin and Cryptocurrency Market

But while recent sharp declines in cryptocurrency markets have dipped investors into fear, an optimistic statement has been made by Grayscale, one of the world’s largest crypto asset management companies.

But Grayscale Research Director Zach Pandl rejected the term for the market downturn as a “crypto winter” in his statement, saying that this is not just ‘the situation of today is undergoing microbial risk mitigation process’.

Zach Pandl, who studies Bitcoin’s roughly 45% decline in value over the last few months, made important predictions about what will happen to markets. Pandl’s analysis is based here on the points of .

The price drop in Bitcoin and other cryptocurrencies is not directlyattributed to Pandl’s principle issue of the assets ‘inherently worth’. The analyst said the main reason is a “de-risking” strategy of investors with growth-oriented portfolios. Speaking about Bitcoin’s new ties to software and quantum computing stocks Pandl said ‘This isn’t an identity crisis; this is what marginal buyers (growth investors) do in the market. , ” and.

Pandl compared Bitcoin to gold, saying that bitcoin is “young gold still in its maturing stage” when comparing Bitcoin and gold. Although gold is known for thousands of years, he notes that Bitcoin’s only 17 year old and believes “Bitcoin will ultimately eventually become reserve asset status for central banks in the long run.”

Pandl sees three main catalysts for a market turnaround and rally:

The passage of legislation like the “Clarity Act” which is currently under consideration in the US Senate, will open up the way for institutional investment.

• The robust performance of the US economy and continued investment in artificial intelligence (AI) could boost risk appetite again.
  But the fact that a candidate who is considered for the FED chairmanship will not take ‘hawkish’ positions (despite being thought to be so) could support the markets, * The expectation that “the market” would have been supported by this position of ‘hawks’.

According to Pandl, “The future vision is about price and purpose… so we need platforms like Ethereum, Solana or Chainlink. Pandl, claiming that the financial system will be changing by tokenization, believes stablecoins are “the first great success story” in blockchain technology and would set itself as the norm in institutional cash management.

Pandl said the current decline could be a “buying opportunity” for investors, reminding investors that most institutional investors have not yet invested in Bitcoin ETFs so the growth potential is still at its very early stages. His advice for investors was to follow a disciplined rebalancing and appropriate position size strategy in order to manage volatility, he said.

*This is not investment advice.

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