Grayscale CEO Michael Sonnenshein updates Crypto Market Outlook, mentions one thing he’s excited about
Grayscale CEO Michael Sonnenshein says the worst of the crypto markets is likely over, and digital currencies are showing signs of decoupling from traditional stocks.
In a new interview with crypto analyst Scott Melker, Sonnenshein says that the contagion from the FTX collapse and other setbacks in the crypto sector is no longer something to worry about.
“I would like to say that of the shoes that are going to drop, I hope they’ve all dropped by now. Certainly, we’re sad as an organization, and certainly I, having been in crypto as long as I have, I obviously very sad to see a lot of people who have stumbled into either FTX or are waiting to see how Genesis bankruptcy turns out. But I’m cautiously optimistic.”
He says that while stock markets show volatility, crypto prices remain in a relatively narrow value channel, suggesting that they may begin to perform independently of traditional financial markets.
“I honestly think that the combination of what we’re seeing again now in the stock markets with volatility again is a little bit uncertain where rates are going, but kind of starting to see crypto stay in a pretty tight band from a price perspective. are perhaps signs that things are getting disconnected from the stock market. And maybe, for most investors, they think that the pain that’s going to be in the market now has been out there and digested, and it hasn’t just been bankruptcies or insolvencies, we’ve put a lot of pressure on the miners and other parts of the ecosystem.”
The Grayscale CEO says it’s unclear whether crypto will return to all-time highs anytime soon, but he says the relative price stability could make for a healthier crypto sector overall.
“I am hopeful. Whether or not we return to all-time highs obviously remains to be seen. But I will say that it’s interesting in these kinds of environments where prices become a little more stagnant, you really start to weed out those who are long-term players and people who are really building and focusing on the crypto ecosystem from those who are just in a way of trying to make a profit money or not really invested in crypto for the long term.”
Sonnenshein also says he’s excited about the new crypto use case, ordinals. Ordinal inscriptions are digital assets inscribed on a satoshi, the lowest denomination of a Bitcoin (BTC), and are similar to non-fungible tokens (NFT).
“Well, certainly one thing that’s ticked up in the last couple of months is the idea of ordinals, which I think is super interesting. I continue to be impressed by how crypto as an industry continues to unlock new use cases.”
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