Grayscale research head Zach Pandl said Bitcoin’s structural adoption trend is continuing, the current bear market has entered a deeper phase, and the macro outlook is generally favorable. According to Odaily, he said three factors may support long-term investors, but Bitcoin could still fall further.

Grayscale said Bitcoin adoption growth is being driven by government deficits, broader blockchain use in financial services, and generational changes in investor asset allocation. The current bear market has lasted 10 months, close to the average and median duration of the previous four cyclical bear markets of 11 to 12 months.

Pandl said macro risks mainly depend on real interest rates and Federal Reserve policy. The Federal Open Market Committee kept the federal funds rate at 3.5% to 3.75% in July, and further rate hikes could push Bitcoin lower. Bitcoin briefly rose to $79,461 on August 21 before falling back to about $77,000.