Grayscale sees this week as a possible turning point for Bitcoin
Grayscale said in a post on X on Aug. 22 that this week could become an important turning point in Bitcoin’s (BTC) cycle.
The firm said Bitcoin has historically tended to bottom after falling about 80% from a prior cycle peak, while the current bear market’s deepest decline has been about 50%, far smaller than in several previous cycles.
What the drawdown means in Grayscale’s view
Grayscale said the market had been debating whether Bitcoin would face another decline in the fourth quarter of 2026. Even though risks remain, the firm said this week’s sharp rebound may indicate that Bitcoin has already formed a more durable bottom.
In past bear markets, Bitcoin generally saw much steeper pullbacks before a new cycle of gains began. This time, the adjustment has been relatively limited, and the recent price recovery has led some market participants to reassess the cycle path.
Grayscale’s next watchpoints
If the rebound continues, Grayscale said Bitcoin may be entering a new accumulation phase, with attention shifting from whether prices will keep probing lower to what conditions could trigger the next uptrend. The firm also said macro conditions, market liquidity and investor sentiment remain key factors for the next move.