Grayscale: BTC Halved and Nearing Cycle Bottom; Fed and CLARITY Bill Are Key

News Editor

2026-07-01 06:31:31

Grayscale Research reports Bitcoin's 50% drop from $125K high to below $60K is a cyclical correction within a long-term uptrend. A bottom depends on Fed rate decisions and Senate progress of the CLARITY Act. Current valuation is seen as a favorable entry for long-term investors.

Market Performance and Cycle Positioning

Bitcoin price has halved from its October 2025 all-time high of $125,000 to below $60,000, a decline of over 50%. Grayscale Research views this deep pullback not as a trend reversal but as a cyclical correction within a long-term bull market, and considers the current price close to the cycle bottom.

Key Drivers

The report highlights two key variables for confirming the bottom: the Federal Reserve's future interest rate decisions (a slower pace would be positive for risk assets) and the progress of the CLARITY Act in the Senate, which could significantly impact the crypto regulatory landscape. Given the significantly compressed valuation, Grayscale sees this as an attractive entry point for long-term investors.

This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan.

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