Grayscale predicts Bitcoin will reach a new high in 2026, questioning the 'four-year cycle theory'

Grayscale Research stated that Bitcoin is expected to reach an all-time high in 2026, a view that counters concerns that 'Bitcoin is entering a prolonged period of deep decline.'

In a report released on Monday, Grayscale Capital pointed out that Bitcoin may not necessarily follow the so-called 'four-year cycle' — a widely held belief that Bitcoin prices peak every four years (synchronized with its halving cycle) and then experience significant corrections.

Grayscale Capital analysts stated: 'Although there is uncertainty in the outlook, we believe that the 'four-year cycle theory' will ultimately be proven wrong, and Bitcoin prices are expected to reach new highs next year.'

According to The Block's price page, since the beginning of October, Bitcoin has been in a state of fluctuation, and as of most of November, its price has decreased by 32% from its peak. On Monday, Bitcoin's price briefly touched $84,000 before rebounding. As of 2:20 AM Eastern Time on Tuesday, the price had risen back to $86,909.

Grayscale Capital noted that, based on historical data, long-term investors may achieve returns by holding assets during volatility, but in the process, they often have to 'endure pullbacks that can sometimes be quite challenging.' The agency added that during bull markets, pullbacks of 25% or more are quite common, and such pullbacks do not necessarily indicate the start of a long-term downtrend.