Grayscale has said it is a good time for long-term investment, even as the cryptocurrency downturn has continued since October last year.

On March 3, blockchain media outlet BeInCrypto reported that Grayscale said in a recent market commentary, "Now is an appropriate time for long-term investors to consider asset allocation to cryptocurrencies."

Grayscale pointed to a notable decline in the cryptocurrency market in early last month, driven by a slump in high-growth software stocks and other stock sectors tied to early-stage technology. Market data showed the total cryptocurrency market capitalisation fell about 10.8 percent in the first week alone. By the end of that first week, bitcoin (BTC) fell to $60,000 and other major assets also posted big losses.

The FTSE/Grayscale Crypto Sector Index fell 26 percent from Jan. 30 to Feb. 5. In the cryptocurrency sectors in February, the artificial intelligence (AI) segment was the best performer, with a milder decline than other sectors. This was because enthusiasm revived for AI agents, autonomous software that can operate independently on behalf of users to pursue complex goals.

As market conditions stabilised, Grayscale cited three long-term investment factors: the combination of AI and blockchain, growth in stablecoins and tokenisation, and U.S. economic stability. The report stressed that AI is not a competitor to blockchain but complementary, and that blockchain is likely to become the foundation of AI financial systems.

It also said that with regulatory clarity being secured, the stablecoin and tokenisation markets are growing rapidly. After the GENIUS bill passed last year, companies such as Meta, Stripe and BlackRock have actively participated in stablecoin and tokenisation projects, expanding the market.

The U.S. economy is also expected to be a positive factor for long-term investment. Grayscale said, "Excessive AI investment could be a medium-term risk, but innovation is rapid and data centre capacity is insufficient, leaving substantial room for growth." It added that market uncertainty has increased as Kevin Warsh was nominated to replace Jerome Powell as Federal Reserve chair, but Grayscale expects a positive trend in the cryptocurrency market to continue over the long term.