Grayscale says that the bull market remains alive and Bitcoin could reach new highs in 2026
Grayscale believes that the Fed meeting next Wednesday (10) could change market sentiment
Grayscale, the manager responsible for some of the leading cryptocurrency ETFs in the market, believes that Bitcoin continues in a bull cycle, despite the 30% drop from its historical peak.
As justification, analysts point out that this is the 9th significant drop of this cycle.#Binance $BTC
“Grayscale does not believe that Bitcoin is close to a prolonged major bear cycle and expects the price to make new highs next year,” wrote the manager.
The text highlights possible cuts in interest rates by the Fed, as well as bipartisan regulatory advances, also in the U.S.
Grayscale states that the drop in Bitcoin is a retracement that will last a few months.
While market sentiment has gone to ‘extreme fear’ with the recent drop in Bitcoin, Grayscale believes this was just a normal market correction.
“The price of Bitcoin typically drops at least 10% three times a year.”
“From peak to trough, the price dropped 32%. This makes the current correction close to the historical average. Bitcoin has already seen drops of at least 10% about 50 times since 2010, and these drops had an average retracement of 30%,” the analysts explained. “Since the price hit the bottom in November 2022, it has fallen more than 10% on nine occasions.”
