{"id":17133,"date":"2025-12-02T21:06:06","date_gmt":"2025-12-02T21:06:06","guid":{"rendered":"https:\/\/bitunikey.com\/news\/grayscale-bitcoin-slide-is-typical-sees-new-highs-in-2026\/"},"modified":"2025-12-02T21:06:10","modified_gmt":"2025-12-02T21:06:10","slug":"grayscale-bitcoin-slide-is-typical-sees-new-highs-in-2026","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/grayscale-bitcoin-slide-is-typical-sees-new-highs-in-2026\/","title":{"rendered":"Grayscale: Bitcoin slide is \u2018typical,\u2019 sees new highs in 2026"},"content":{"rendered":"<div class=\"post-detail__content blocks\">\n<p class=\"is-style-lead\">Bitcoin\u2019s latest 30% slide hasn\u2019t rattled Grayscale Research, which argues that the decline mirrors historical patterns and is unlikely to mark the beginning of a prolonged downturn.<\/p>\n<div id=\"cn-block-summary-block_d03a64fd0c328d3b49891bf9b2cb5a5e\" class=\"cn-block-summary\">\n<div class=\"cn-block-summary__nav tabs\">\n        <span class=\"tabs__item is-selected\">Summary<\/span>\n    <\/div>\n<div class=\"cn-block-summary__content\">\n<ul class=\"wp-block-list\">\n<li>Grayscale Research says Bitcoin\u2019s recent 30% pullback is normal for a bull market and does not signal the start of a deep, multi-year downturn.<\/li>\n<li>Privacy-focused tokens outperformed in November, while new XRP and Dogecoin exchange-traded products hit the market amid expanding U.S. crypto ETP offerings.<\/li>\n<li>Fed rate cuts and bipartisan crypto legislation could lift crypto markets into 2026, even as valuations lag improving fundamentals.<\/li>\n<\/ul><\/div>\n<\/div>\n<p><!-- .cn-block-summary --><\/p>\n<p>In a new <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/research.grayscale.com\/market-commentary\/november-2025-what-it-takes-to-hodl\" target=\"_blank\" rel=\"nofollow\">report<\/a>, published Dec. 1, the asset manager said it expects Bitcoin (BTC) to notch new highs next year despite mixed short-term indicators potentially.<\/p>\n<p>The pullback \u2014 the ninth meaningful drop since the current bull market began \u2014 fits squarely within Bitcoin\u2019s typical market behavior. Since 2010, the cryptocurrency has suffered roughly 50 drawdowns of 10% or more, with an average peak-to-trough decline of about 30%<\/p>\n<p>\u201cBitcoin investors have been rewarded for HODL-ing, but they\u2019ve had to endure tough drawdowns along the way,\u201d the firm wrote. The latest decline, which began in early October and extended through November, bottomed out at 32%.<\/p>\n<p>Today, Bitcoin is up over 6% and trading in the $90,000 range. See below:<\/p>\n<figure class=\"wp-block-image size-large\"><figcaption class=\"wp-element-caption\">Source: <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.coingecko.com\/en\/coins\/bitcoin\" target=\"_blank\" rel=\"nofollow\">CoinGecko<\/a><\/figcaption><\/figure>\n<h2 class=\"wp-block-heading\"><strong>Grayscale rejects \u2018four-year cycle\u2019 doom scenario<\/strong><\/h2>\n<p>While Bitcoin\u2019s halving cycle has historically aligned with multi-year price patterns, Grayscale pushed back against the widespread belief that the market is due for a 2026 downturn. The firm said this cycle looks markedly different: no parabolic blow-off top, more institutional participation via exchange-traded products and digital asset treasuries, and a supportive macro backdrop.<\/p>\n<p>The company also sees signs that a short-term bottom may be forming, pointing to heavily skewed put options and digital asset treasuries trading at discounts to their net asset values \u2014 indicators of reduced speculative excess.<\/p>\n<h2 class=\"wp-block-heading\"><strong>Privacy tokens shine as AI sector slumps<\/strong><\/h2>\n<p>Outside Bitcoin, crypto markets split sharply by sector in November. Privacy coins, like Zcash and Monero, led the gains. Whether that will last remains to be seen. <\/p>\n<p>Zcash price plunged 24% on Tuesday, with analysts warning of further downside but noting that long-term charts and the privacy thesis remain intact. <\/p>\n<p>Ethereum-related privacy initiatives also accelerated: Vitalik Buterin introduced a new privacy framework at Devcon, and Aztec launched its Ignition Chain.<\/p>\n<p>By contrast, Grayscale\u2019s Artificial Intelligence Crypto Sector plunged 25% despite growing adoption of some AI-linked technologies. <\/p>\n<p>Near Protocol\u2019s (NEAR) \u201cIntents\u201d product \u2014 which automates cross-chain transactions and has boosted the utility of Zcash \u2014 saw sharply rising traction. Coinbase\u2019s new x402 open payments protocol also gained momentum, jumping from 50,000 to more than 2 million daily transactions in November.<\/p>\n<p>The crypto exchange-traded product landscape expanded further in November as the first XRP and Dogecoin ETPs began trading after U.S. regulators approved new generic listing standards. <\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<h2 class=\"wp-block-heading\"><strong>Lower rates, bipartisan legislation could fuel 2026 rally<\/strong><\/h2>\n<p>Grayscale said macro conditions could provide meaningful tailwinds into year-end. A potential interest-rate cut at the Federal Reserve\u2019s Dec. 10 meeting \u2014 and hints of additional easing next year \u2014 could weaken the U.S. dollar and boost demand for assets like Bitcoin and gold.<\/p>\n<p>Reports that National Economic Council Director Kevin Hassett is the leading candidate to replace Fed Chair Jerome Powell also reinforce expectations for lower rates. Hassett previously called the Fed\u2019s September rate cut \u201ca good first step\u201d toward \u201cmuch lower rates.\u201d<\/p>\n<p>Another possible catalyst: continued bipartisan progress on crypto market-structure legislation in Congress. The Senate Agriculture Committee <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.agriculture.senate.gov\/newsroom\/rep\/press\/release\/boozman-booker-release-bipartisan-market-structure-discussion-draft\" target=\"_blank\" rel=\"nofollow\">released<\/a> a bipartisan draft bill in November. If crypto avoids becoming a wedge issue ahead of the 2026 midterms, the legislation could reshape institutional participation.<\/p>\n<p>Despite short-term volatility, Grayscale maintains that the most significant returns will favor long-term holders. \u201cEventually fundamentals and valuations will converge,\u201d the firm wrote, \u201cand we are optimistic about the outlook into year-end and 2026.\u201d<\/p>\n<p>    <!-- .cn-block-related-link --><\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin\u2019s latest 30% slide hasn\u2019t rattled Grayscale Research, which argues that the decline mirrors historical patterns and is unlikely to mark the beginning of a prolonged downturn. Summary Grayscale Research&hellip;<\/p>\n","protected":false},"author":1,"featured_media":17134,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-17133","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/17133","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=17133"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/17133\/revisions"}],"predecessor-version":[{"id":17135,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/17133\/revisions\/17135"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/17134"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=17133"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=17133"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=17133"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}