Grayscale: BTC Nears Cycle Bottom After Halving
Bitcoin has plummeted more than 50% from its October all-time high of $125,000, currently trading below $60,000. According to Grayscale Research, this steep correction is a cyclical pullback within a broader long-term bullish trend rather than a structural reversal. The firm identifies two pivotal factors that will determine whether a genuine bottom is forming: first, the Federal Reserve's interest rate trajectory—if the FOMC pauses or pivots dovish, it could ease liquidity pressures on risk assets; second, the legislative fate of the CLARITY Act in the U.S. Senate, which, if passed, would provide a clearer regulatory framework for digital assets. Grayscale analysts emphasize that at current price levels, Bitcoin offers a compelling risk-reward profile for long-term investors accumulating positions. They caution, however, that short-term volatility may persist until either catalyst materializes.