A growing group of analysts is pushing back against the idea that Bitcoin has entered a long-term slump.
Among them is Grayscale, which argues that traders are misinterpreting the recent selloff — and that what looks like exhaustion may actually be the middle phase of an uptrend rather than the beginning of a collapse.
In other words: the downturn might be telling the opposite story of what most investors assume.
Grayscale’s research notes that Bitcoin has fallen 32% since October, briefly dipping to $84,000 before stabilizing around $86,900. The instinctive reaction has been fear that the cycle is over.
But Grayscale stresses that pullbacks of 25% or more are routine in major bull markets — not the signal that a peak has already happened. The firm says Bitcoin is still showing structural strength despite volatility rather than because of it.
Their position: volatility right now is a feature of the cycle, not proof that the cycle is ending.
For more than a decade, Bitcoin’s history seemed to revolve around halving events: supply shock → dramatic rally → harsh crash → reset.
This cycle is behaving differently.
Grayscale says there’s a reason: the investor base has changed. Instead of retail speculation driving every phase of the market, institutional buyers now anchor the demand side — through ETFs, corporate treasury strategies and long-term allocation models.
That change means Bitcoin is reacting more to liquidity, interest rates and regulation than to a predictable four-year countdown.
If the four-year cycle can no longer predict peaks, what can?
Grayscale flags three forces that didn’t exist in previous eras and now carry outsized influence:
* institutional allocations through ETFs
* expected rate cuts that would ease liquidity conditions
* rare bipartisan momentum for U.S. crypto legislation
Together, the firm suggests, those factors could set the stage for Bitcoin to explore new price territory in 2026 — with or without a halving-driven mania.
BitMine CEO Tom Lee — known for his Ethereum-first perspective — lands on the same timeline, projecting that Bitcoin could set a new record as early as January 2026 if macro conditions tilt supportive.
The unexpected overlap between analysts who normally disagree has given weight to the idea that the recent selloff didn’t mark the top — it marked an interruption.
