The Crypto Winter Could Last Another Eight Months, Grayscale Reports

Bitcoin has breached the $22k resistance level, leading to speculation that the asset has bottomed out.

Bitcoin once again breached the $22k resistance level, leading to speculation that the asset has bottomed out. However, Grayscale has released predictions that the bear cycle could last for a further 250 days, based on previous market cycles.

Bitcoin Bear Cycle Could Last 8 More Months 

In its recent report, ‘Bear Markets in Perspective,’ Grayscale, the world’s largest digital asset manager, compared the current bear market to previous market cycles in an attempt to predict the end of the crypto winter.

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According to Grayscale Investment, the average crypto market cycle lasts for around four years, or approximately 1,275 days.

The digital asset manager writes that, if previous market cycles are anything to go by, Bitcoin enthusiasts could be waiting another 250 days to see the end of the bear market cycle, which started in 2020.

The Crypto Market Is Maturing

Grayscale explained that Bitcoin’s run to its ATH in November 2021 was a recovery that lasted longer than those of previous cycles. It theorizes that the bullish run may be due to the “growing maturity of the crypto market.”

The digital asset manager adds that the maturing of the crypto market has made it easier for retail and institutional investors to have higher confidence investing in crypto assets, compared to in previous market cycles.

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Grayscale remarked that, in their view, the current price of Bitcoin represents a prime opportunity to buy the asset.

On the Flipside

  • Given its current price drop, Changpeng Zhao opined, CEO of Binance, believes Bitcoin could take as long as two years to reattain its ATH of $68.7k.

Why You Should Care

Grayscale concludes that, regardless of the severity of each market cycle, the crypto industry will always comes out stronger in the end.

Read more about CZ’s Bitcoin predictions below:

Binance CEO: Bitcoin Could Stay Below $69,000 Peak for Two Years

For an update on the Grayscale spot Bitcoin ETF, check out:

Grayscale Launches Legal Battle Against SEC for Rejecting Spot Bitcoin ETF

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Milko Trajcevski

Milko Trajcevski is a DailyCoin news reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs). Location: Skopje, Macedonia