According to Grayscale's Director of Research, Zach Pandl, there's no reason to panic about Bitcoin's recent selloff, as the macroeconomic backdrop remains supportive with central banks easing rates and adoption trends fueled by ETFs and a pro-crypto shift in the US. Pandl sees Bitcoin's price action reflecting its growing status in global finance and expects altcoins to outperform in the intermediate stage of the crypto market cycle. He also highlights the potential for institutional adoption, clearer staking regulations, and the convergence of crypto and artificial intelligence as drivers of long-term growth, urging investors to focus on the bigger picture rather than short-term volatility.
As Bitcoin finds itself retreating from a recent all-time high and struggling to hold $100,000 after a Fed-triggered selloff, now is not the time to panic according to Grayscale's Director of Research.
While the recent market wobble has caused some unease, Grayscale's Zach Pandl joined Coinage to assure investors of the longer-term investment picture.
“There’s absolutely no reason to panic in any sort of way,” Pandl emphasized. According to Pandl, the macroeconomic backdrop remains highly supportive. Central banks worldwide are easing rates, while adoption trends fueled by Bitcoin exchange-traded funds (ETFs) and a pro-crypto political shift in the U.S. set the stage for further growth.
The recent rate cut by the Federal Reserve came with a tempered outlook, as Chair Jay Powell signaled that fewer cuts may follow in 2025. This has strengthened the dollar while temporarily weighing on Bitcoin. "They’re still cutting rates... but they signaled maybe fewer rate cuts next year," Pandl explained, adding that this stance is "positive for the dollar and negative for things that compete with the dollar like gold... and Bitcoin."
Looking ahead, Pandl sees Bitcoin's price action reflecting its growing status in global finance. “Bitcoin is not some exotic thing in its own corner of the financial system,” he noted. “It’s a $2 trillion asset right at the heart of the financial system.” He framed recent volatility as evidence of Bitcoin’s integration into the broader macroeconomic landscape, where it now trades alongside major currencies like the euro and the yen.
Pandl also shared insights into what lies ahead in the crypto market cycle. "We are in an intermediate stage of the cycle, and we’re probably at a phase where Bitcoin dominance should be coming down." With Bitcoin dominance already falling at a pace mirroring past cycles, he suggested that altcoins could be poised for outperformance. “Altcoin season... would be a good outcome for many of our investors,” he added.
Looking beyond market dynamics, Pandl highlighted the seismic regulatory shift anticipated under the incoming U.S. administration. He described the expected policy changes as a “very big swing in policy” that could reshape the crypto landscape. Notably, he emphasized the need for clearer staking regulations, which would unlock new opportunities for institutional investors. “There’s nothing problematic about staking... We just need clear rules around that,” he said.
Institutional adoption remains a core narrative, and Pandl sees long-term investors such as pensions, endowments, and sovereign wealth funds as the next wave of significant buyers. “Bitcoin... fits very naturally in the context of a diversified portfolio,” he noted.
Lastly, Pandl underscored the growing convergence of crypto and artificial intelligence (AI), calling it "a big bet for Grayscale.” Despite intense market attention on AI in 2024, he predicted that it would continue to dominate mindshare in 2025, driven by advancements in decentralized data, computation, and even AI-driven crypto projects .
For investors weighing the latest Bitcoin dip, Pandl’s message was clear: "The crypto industry itself has enormous tailwinds at the moment." While acknowledging the potential for broader geopolitical and economic risks, he maintained that crypto’s underlying growth drivers remain intact. “Our industry has the wind at its back for the time being,” he concluded, urging investors to focus on the long-term potential rather than short-term volatility.