The CEO of Grayscale, Michael Sonnenshein, gave his assessment of the current state of the market for cryptocurrencies. He remains positive despite the doom and gloom.
The state of the market for criptocurrencies is the state of the market.
The Fear and Greed Index shows a reading of 12 within extreme fear territory. The Index is up one point from yesterday.
A new pullback on Thursday, which began at 09: 00 GMT, sees intense sell pressure on the alts. The biggest top 10 losers over the last 24 hours is Solana, down 7%, and Ethereum is down 8% over the same period.
As a lagging indicator, it is likely that the Fear and Greed Index will go further into extreme fear as the chart gets updated on Friday.
Over the last four weeks, the total market cap has seen outflows of $638 billion. The outlook appears bleak when considering YTD outflows have topped $982 billion, or 46%, the outlook appears to be bleak.
Reasons for hope during the downturn are there.
Despite the harsh market conditions, Sonnenshein remains unfazed by recent market activity.
Sonnenshein spoke to Yahoo Finance from the World Economic Forum in Davos, saying that the current state of the market needs to be taken into account with broader macro factors. Rate rises have a huge impact on asset classes, not justCryptocurrencies.
Sonnenshein said that the pullbacks for cryptocurrencies are nothing new. He said that investors remain unaffected by the sell-off and see this as a buying opportunity based on what he heard.
Sonnenshein commented that having just ten years or so of data to draw from doesn't help in this regard, as well as the disappearing narrative ofBitcoin as an inflationary hedge.
He still considersBitcoin digital gold, and capable of holding its own during these challenging economic times.