The state of the current crypto market is not necessarily something to write home about. The rates of almost all cryptocurrencies are very deep in the red and investor sentiment is pretty bad. Nevertheless, these investors were not deterred by the crash, according to the CEO of Grayscale; the largest provider of crypto funds in the world.
Grayscale: Crypto Investors See Opportunities
Grayscale CEO Mike Sonnenshein recently gave a interview with Yahoo Finance notes that he hears from crypto investors that they are generally not easy to deter. It is, of course, a fact that the market is on hiatus and volatility is very high, yet many investors are looking opportunistically to the current market rather than fearfully, Sonnenshein said.
“However, the recent sell-off has not deterred them from what we are hearing from investors. If anything, they look at it opportunistically and a pullback like this is nothing new in the crypto space.”
Experienced crypto investors have experienced such a crash before. They therefore also know what will happen to the prices, at least historically, after a serious crash. In the past it has been shown that after a severe correction, the market manages to set new records within a relatively short time.
Bitcoin and gold
Also, Sonnenshein compares the largest cryptocurrency, bitcoin (BTC), currently with gold. According to him, bitcoin behaves in a way that is certainly comparable to the precious metal and can therefore be seen as a kind of “digital gold,” and he expects that the correlation between bitcoin and the stock market will be short-lived.
“If you look over a longer time horizon, you will see that crypto is not correlated with other asset classes, although it is often scrutinized as we only have the last 10+ years of trading history to really examine.”
