Grayscale head of research Zach Pandl said bitcoin’s roughly $58,000 low, recorded in late June, remains his call for the bottom of the market’s current bearish phase. The assessment matters for Grayscale’s clients because the firm believes current market conditions support investment in digital assets.

Pandl said in an interview with Incrypted that Grayscale evaluates whether clients should invest in bitcoin using three core components: the long-term structural trend, the stage of the market cycle and the macroeconomic backdrop.

Grayscale believes all three factors are currently favorable. Pandl cited continued adoption of digital assets and their limited supply, what he views as the end of the market’s bearish phase, and the current macroeconomic environment.

“In my view, today you can tick every one of these boxes. So we’re definitely giving our clients the green light,” he said.

Pandl outlines Zcash privacy thesis

Pandl also compared bitcoin with Zcash, on which Grayscale has offered an investment product for about nine years. He said his thesis on Zcash centers on privacy, arguing that digital currencies need a dedicated privacy layer that bitcoin lacks.

According to Pandl, different blockchains use different architectural approaches to serve different user groups. Zcash emphasizes privacy, partly sacrificing the auditability provided by bitcoin’s open architecture, he said.

Pandl described Zcash as an “underutilized and underexplored design space” and said the asset does not necessarily compete directly with bitcoin.

He also linked the outlook for privacy to the growing capabilities of artificial intelligence. Pandl said Zcash could offer investors a way to express a view on personal and financial privacy.

Zcash’s price recently came close to $1,400.

Source: Incrypted