Bitcoin May Have Reached Turning Point, Grayscale Says

Grayscale believes that Bitcoin may have reached a turning point after its recent recovery. The crypto asset manager shared this assessment in an Aug. 22 post on X, citing a chart comparing Bitcoin's current decline with four previous market cycles.

The chart indexes Bitcoin at 100 at each cycle peak and tracks its subsequent performance by the number of days since that peak. According to Grayscale, the current drawdown is shallower than the four earlier cycle declines shown.

Historically, Bitcoin has bottomed around 80% below its cycle peak price. In contrast, the latest bear market saw Bitcoin fall approximately 50% from its peak, less than all prior cycles to this point.