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 underperformed in recent months. Since hitting an all-time high of $69,000 in November 2021, Bitcoin has lost over 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 continued 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 short term we [crypto] we will find our place. I think the markets will continue to find their place.
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 main stablecoins in the market, meant that all stablecoins remained a concern in the ecosystem even though they remained 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 biggest players in the cryptocurrency space and currently has over $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 new product, the Grayscale Bitcoin Trust (GBTC), remains very popular among institutional investors. Grayscale is working to turn 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.
