Grayscale has released a report predicting that Bitcoin could reach new all-time highs in 2026. The company argues against the widely accepted four-year cycle theory in the crypto market, arguing that Bitcoin is not bound by a halving-limited price cycle.
The report stated that concerns that the cryptocurrency has entered a long-term downward cycle are overblown, despite its current volatile trend.
Grayscale analysts emphasized the potential for Bitcoin’s price to reach new highs next year, while highlighting the sharp corrections in recent months. Bitcoin, which has lost 32% of its value since October, briefly dropped to $84,000 but later recovered to $86,900.
The firm noted that pullbacks exceeding 25 percent are common in bull markets and should not be seen as the start of a long-term bear market.
Grayscale cited the increasing weight of institutional investors as one of the reasons why Bitcoin has departed from the classic four-year pattern this cycle.
It was stated that, unlike previous periods, this cycle has not seen parabolic rises; institutional funds have largely been concentrated in ETFs and digital asset treasuries. It was also noted that interest rate cuts and bipartisan legal advances in crypto regulations in the US have created a positive macro backdrop for Bitcoin.
Ethereum-focused BitMine CEO Tom Lee also supported Grayscale’s views, stating that Bitcoin could see a new all-time high by January 2026.
*This is not investment advice.