Grayscale Asset Management believes that the Bitcoin drop in 2025 could be a local bottom rather than the end of a new cycle, with the possibility of the digital currency reaching new record levels in 2026.

A research report from the company indicated that the market may break the traditional four-year diminishing cycle, as indicators such as the rising deviation of Bitcoin options above 4 suggest that investors have broadly covered risks, preparing for any further decline.

Despite Bitcoin's 32% drop, recent inflows into exchange-traded funds have started to improve, after recording four consecutive days of positive inflows, indicating a gradual return of investors' appetite to buy.

The market is awaiting the U.S. Federal Reserve's decision on interest rates on December 10, which could be the biggest catalyst for Bitcoin and digital currencies in 2026, alongside the expected progress on the "Digital Asset Market Structure" bill, which could encourage institutional investment if digital currencies remain a bipartisan issue away from electoral tensions.