Grayscale says BTC bear market may be nearing an end

Grayscale’s head of research, Zach Pandl, said the recent Bitcoin bear market may be nearing its end as BTC prices begin to stabilize, while the base of medium- and long-term BTC investors is likely to keep expanding regardless of short-term price moves. Pandl said rising concerns over inflation and currency debasement as government debt increases would likely boost demand for scarce and alternative assets. He added that the expansion of stablecoins and tokenized services is also expected to increase blockchain use across finance, making BTC trading and custody more commonplace. Pandl also said younger investors show a stronger preference for digital assets, while alternative assets are increasingly becoming a standard part of portfolios. Investment in BTC by institutions, wealth management platforms, and individuals is expected to continue growing through exchange-traded products, or ETPs, he said. According to a Grayscale chart, the number of BTC addresses with a balance stood at about 57 million as of July 31, extending its long-term uptrend.