Bitcoin will find its feet soon, says Grayscale CEO

The cryptocurrency market has been slumping recently. Since peaking at $69k in November 2021, Bitcoin has lost more than half its value.

Over the past year, Bitcoin’s price has fluctuated wildly. Currently, one bitcoin is valued at around $28,300 per coin, down by more than 3% in the last 24 hours.

This has led to many investors losing faith in Bitcoin and other digital currencies. However, there are still some believers in the industry.

While the Bitcoin slump has been a cause for concern among investors, it doesn’t seem to have phased according to an expert.

One of them is Grayscale CEO Michael Sonnenshein. In a recent interview, he states that Bitcoin will find its feet again soon:

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

Sonnenshein is confident that Bitcoin will make a comeback despite the recent slump in prices. He believes that the digital currency is still in its early stages and has a lot of growth potential.

The collapse of the Terra Blockchain and UST Stablecoin. Has been a major talking point in the cryptocurrency community and beyond over the past few weeks.

Now, the CEO of Grayscale Investments, Michael Sonnenshein, has spoken about the matter, calling it a “speed bump” for Bitcoin (BTC).

During an interview on CNBC’s Fast Money show on May 28, Sonnenshein was asked about his thoughts on the Terra situation.

Sonnenshein says that the collapse of UST is one of the most reputable stablecoins on the market. Has made all stablecoins an issue in the ecosystem even as they continue to drive crypto markets. He states;

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

“I think it’s a speed bump, no doubt about it. I think Bitcoin, though, will continue to find its footing. We’ve seen Bitcoin be incredibly resilient over the last 11 years. It’s faced a lot of headwinds, a lot of challenges, and I think this is just one more thing that it’s going to have to work through.”

While Bitcoin is still down over 50% from its all-time high in December 2017, when it hit almost $20,000 per coin. Sonnenshein remains positive about the long-term prospects of the world’s first and most valuable cryptocurrency.

Grayscale is one of the most well-known names in the cryptocurrency market, with over $25 billion in assets under management.

Institutional investors may now invest in cryptocurrencies and assets such as Bitcoin and Ether through the firm.

The Grayscale Bitcoin Investment Trust (GBTC) is a new offering by Grayscale that has become quite popular among institutional investors. The GBTC is currently being worked on to transform it into a Bitcoin ETF.

While Bitcoin has had a tough few years, with its price falling significantly from its all-time high. Sonnenshein is confident that the cryptocurrency will eventually find its feet. He believes that Bitcoin still has a lot of potentials and is here to stay.

The firm hopes that the United States Securities and Exchange Commission (SEC). Will grant approval for the conversion of GBTC into a Bitcoin ETF. Despite this, the SEC has turned down several spot Bitcoin ETF proposals in recent years.

Despite this, Sonnenshein remains optimistic that Bitcoin ETFs will eventually be approved in the US. He believes that it is only a matter of time before the SEC changes its stance on Bitcoin ETFs.

In the meantime, Grayscale will continue to provide institutional investors with exposure to Bitcoin through its products.