Grayscale Asset Management sees Bitcoin's decline in 2025 as a potential local bottom and not the end of a new cycle, with expectations that the digital currency could reach new record levels in 2026.
A research report from the company indicated that the market might break the traditional four-year diminishing cycle, as indicators like the rising deviation of Bitcoin options above 4 show that investors have widely hedged risks in preparation for any additional declines.
Despite Bitcoin's 32% drop, recent inflows into exchange-traded funds have started to improve, following four consecutive days of positive inflows, indicating a gradual return of investors' desire to buy.#BTC
The market is awaiting the U.S. Federal Reserve's decision on interest rates on December 10, which could be the biggest catalyst for Bitcoin and digital currencies in 2026, alongside the anticipated progress of the "Digital Asset Market Structure" bill, which could encourage institutional investment if digital currencies remain a bipartisan issue away from electoral tug-of-war.$BTC
