Grayscale Turns More Bullish On Bitcoin And Ethereum, Here's Why

Highlights

Grayscale Research has projected Bitcoin to retest its all-time high.
This is hinged on the United States economy avoiding a recession.
Macro events will also contribute to overall asset sentiment.

Asset management firm Grayscale has projected positive growth for Bitcoin (BTC), Ethereum (ETH), and other crypto assets on the back of macroeconomic factors. Although assets declined last month compared to first-quarter figures, the company noted that a swing in bullish factors could ignite market growth. Grayscale remains bullish on Bitcoin and other assets as the firm also rolled out new investment products.

Grayscale Backs Bitcoin and Ethereum Growth

In a recent market report, Grayscale Research highlighted factors for the decline in crypto assets making an upward projection in Bitcoin. According to the firm, Bitcoin will re-test its all-time if the United States economy avoids recessions while maintaining a path to a soft landing. Pointing to macro factors, analysts restated the users adopting Bitcoin as a haven from inflationary risk.

“At the same time, the firm believes that there is very little tolerance for a deep economic downturn, and is expecting policymakers to print and spend at the first sign of trouble. The undisciplined approach to monetary and fiscal policy is one reason why some investors choose to invest in Bitcoin; a period of economic weakness could therefore reinforce the longer-term Bitcoin investment thesis.”

Crypto assets slowed at the start of August following the US Employment report which came in weaker-than-expected. Grayscale explained that the drawback might not be tighter like in previous cycles because of the shift in several US politicians ahead of the elections.

Also Read: Bitcoin Sees Strong US Buying Pressure Amid US Recession Fears

Institutional Investors Change The Dynamics

This year, institutional investors have increased their appetite in the market driving up sentiments. The launch of Bitcoin ETFs by the United States Securities and Exchange Commission (SEC) led to major investments within the industry. Several traditional firms also increased their Bitcoin exposure.

Another significant factor for the Grayscale position is crypto becoming a major election issue with candidates leaning towards the sector. Recently, crypto bills have also made progress in Congress as policy watchers maintain pressure.

Also Read: CBOE Resubmits Bitcoin ETF Options Trading Application, Q4 Approval Likely?

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David Pokima

David is a finance news contributor with 4 years of experience in Blockchain Technology and Cryptocurrencies. He is interested in learning about emerging technologies and has an eye for breaking news. Staying updated with trends, David reported in several niches including regulation, partnerships, crypto assets, stocks, NFTs, etc. Away from the financial markets, David goes cycling and horse riding.

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