Grayscale Says Bitcoin Bear Market Could Extend Through September or October
Summary
- Grayscale said the Bitcoin bear market could continue through September or October.
- It said past Bitcoin bear markets typically bottomed about a year after a market peak, with an average decline of about 80%.
- Grayscale said Bitcoin may already have passed its bottom if the U.S. economy remains resilient and the Fed does not raise interest rates further.
Forecast Trend Report by Period
Grayscale says Bitcoin’s bear market could continue through September or October.
Wu Blockchain reported on July 22 that if Bitcoin’s traditional four-year market cycle repeats, the current downturn may last until September or October.
Grayscale said past Bitcoin bear markets typically bottomed about a year after the market peaked, with an average drawdown of roughly 80%.
The asset manager, however, put greater weight on macroeconomic conditions than on the four-year cycle. As Bitcoin matures into a more established asset, macro factors such as economic growth and real interest rates are exerting a bigger influence on the market, it said.
Grayscale also said Bitcoin may already have passed its bottom if the U.S. economy remains resilient and the Federal Reserve refrains from raising interest rates further.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.