Grayscale: Bitcoin could reach new all-time high next year

Digital asset manager Grayscale projects that Bitcoin could reach a new all-time high next year, supported by an improving macroeconomic environment and a more mature market structure. The firm noted that unlike past cycles, the current bull run has not experienced a sharp, parabolic price increase. Grayscale also highlighted a shift in market composition, with capital inflows now primarily driven by institutions through exchange-traded products (ETPs) and digital asset treasuries (DATs), rather than retail investors. The overall macroeconomic environment also remains favorable for cryptocurrencies, the company added. Grayscale's analysis suggests the current downturn, which began in early October, is a common type of correction seen in bull markets. While Bitcoin has recorded high returns of 35% to 75% over the past three to five years, it has also frequently experienced significant corrections, averaging more than three pullbacks of over 10% annually.