Grayscale CEO Stated That Recent Sell-Off Did Not Frighten Crypto Investors

Grayscale CEO Stated Recent Sell-Off Did Not Frighten Crypto Investors

Despite the current cryptocurrency market sell-off, several of the industry’s leading executives, such as Mike Sonnenshein, CEO of crypto asset management firm Grayscale, remain optimistic.

Sonnenshein said crypto has to be considered “in the context of what has been happening in the broader markets” in an interview with Yahoo! Finance published on May 24. He added that increasing interest rates in the US had produced a lot of volatility in several asset classes.

“The recent sell-off, though, from what we’re hearing from investors, has not deterred them. If anything, they’re looking at it opportunistically and a pullback like this is nothing new in the crypto space,” he stated.

When it comes to crypto’s alignment with other financial assets, Sonnenshein says that when comparing Bitcoin to anything that feels and performs like digital gold:

“If you look out over a longer time horizon, you will see crypto being uncorrelated to other asset classes, although oftentimes it is scrutinized because we do only have the last 10+ years of trading history to really examine.”

He noted that the recent events surrounding TerraUSD and LUNA “really allowed many investors to evaluate the stablecoin ecosystem as a whole. This is a very important component of keeping liquidity in the crypto space but avoiding going back to the traditional financial system.”

Such incidents, according to Sonnenshein, may cause investors to take a step back and examine other stablecoins such as USD Coin (USDC) and others to ensure that they’re performing as they’re supposed to.” On the other hand, as he puts it, the crypto ecosystem is extremely robust, lessons are learnt, and we keep growing, and ultimately emerges stronger.

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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