Bitcoin Price May Have Hit Bottom, But Fed Rate Decisions Remain Key

Grayscale's recent report suggests that Bitcoin may have hit its bottom at $82,000 after suffering a 22% correction from its all-time highs earlier this year. According to historical data, previous cycles typically bottomed about a year after the market peak.

The digital asset management firm noted that selling pressure in spot markets began to fade progressively as institutional buyers absorbed supply, helping stop the chart's decline at key support levels.

U.S. spot Bitcoin exchange-traded funds (ETFs) showed positive net inflows during days of high market volatility, indicating operational support from long-term investors.

The report highlights that the Federal Reserve's interest rate policy will play a crucial role in determining the available liquidity in the crypto market.