Bitcoin will find its footing in the short term, says Grayscale CEO

Bitcoin has lost more than 50% of its value since hitting an all-time high of $69,000 in November 2021.

The cryptocurrency market has been underperforming in recent months. Since hitting an all-time high of $69k in November 2021, Bitcoin has lost more than 50% of its value.

Currently, Bitcoin is trading at around $28k per coin, down by more than 3% over the last 24 hours. 

However, despite Bitcoin’s ongoing price struggle, some market experts believe it will still recover. 

Michael Sonnenshein, the CEO of Grayscale Investments, told CoinDesk TV in a recent interview that he believes Bitcoin will find its footing in the near term. He said;

“I think in the near term, we [crypto] will find our footing. I think that markets will continue to find their footing.”

The collapse of the Terra blockchain and its UST stablecoin has been the major topic of discussion within the cryptocurrency space and beyond over the past few weeks.

Sonnenshein pointed out that the collapse of UST, which was one of the leading stablecoins in the market, meant that all stablecoins remain a concern in the ecosystem even as they remain the backbone of crypto markets. He said;

“Investors are focusing on items like stablecoin governance [and] supply collateral, and over time ensuring that the stablecoins they are involved with are in fact functioning the way they’re designed to do so.”

Grayscale is one of the largest players in the cryptocurrency space and currently has more than $25 billion in assets under management.

The company allows institutional investors to gain access to cryptocurrencies and invest in assets such as Bitcoin and Ether.

Grayscale’s novel product, the Grayscale Bitcoin Trust (GBTC), remains very popular amongst institutional investors. Grayscale is working to turn the GBTC into a Bitcoin exchange-traded fund (ETF).

The company is hoping the United States Securities and Exchange Commission (SEC) approves the conversion of the GBTC into a Bitcoin ETF. However, the SEC has rejected numerous spot Bitcoin ETF proposals over the past few years.