Grayscale: Is Bitcoin at Bottom? Fed Policy Could Spark the Next Rally

Grayscale's latest report argues that despite Bitcoin trading around $65,000 with a ‑1.18% dip in the last 24 hours, the asset has already hit its bottom and could surge again if the Federal Reserve eases monetary policy.

Grayscale's Take: A Bottomed Turning Point

■Bitcoin sits at $65,000, down ‑1.18% over the past day.

■Ethereum and BNB posted similar declines of ‑2.86% and ‑0.56% respectively.

■The firm stresses that this pull‑back is a short‑term correction within a still‑intact long‑term bull market.

The Fed’s Leverage and Liquidity Flow

■The Fed’s policy rate remains at 5.25%, keeping borrowing costs high for investors.

■A potential rate cut could reactivate capital flows toward crypto assets.

■Grayscale estimates that $10 billion of institutional liquidity could redirect 30% of its allocation into Bitcoin.

Market Mechanics and On‑Chain Liquidity Indicators

■Stablecoins like USDC and USDT are flat at 0.00%, providing a liquidity cushion while risk appetite rises.

■Active Bitcoin addresses on‑chain have risen 3.2% over the past two weeks.

■CME Bitcoin futures volume is up 12% week‑over‑week, signalling renewed speculative interest.

Risks and Forward‑Looking Scenarios

■If the Fed maintains the 5.25% rate, crypto markets could face renewed pressure.

■Regulatory uncertainty and short‑term volatility remain elevated.

■A downside scenario could see prices slipping below $60,000, whereas a breakout above $70,000 would confirm the bullish trend.

Berk Arıcan – Tokenomics and Altcoin Lead Analyst: Grayscale’s analysis validates the technical bottom, yet the Fed’s stance remains the key variable. Should liquidity flow unhindered and institutional demand rise, Bitcoin could test the $70,000 mark; otherwise, a support zone around $55,000‑$60,000 is likely to hold.