Why does Grayscale think Bitcoin (CRYPTO:BTC) has reached a bottom?

Grayscale believes Bitcoin (CRYPTO:BTC) may have reached its lowest point because the US Federal Reserve could pause interest rate hikes. Lower rates have historically supported demand for risk assets.

Zach Pandl is Grayscale's head of research. He analyses cryptocurrency markets and macroeconomic trends that could affect digital asset prices.

How could a Federal Reserve pause affect Bitcoin (CRYPTO:BTC)?

A pause in US interest rate hikes could make borrowing cheaper and improve investor demand for Bitcoin (CRYPTO:BTC) and other risk assets.

Has the Federal Reserve announced rate cuts?

No. The Federal Reserve has not announced rate cuts. Grayscale's outlook depends on future policy decisions by the central bank.

Why do interest rates matter for Bitcoin (CRYPTO:BTC)?

Higher interest rates often reduce demand for risk assets, while lower rates can encourage investors to buy assets such as Bitcoin (CRYPTO:BTC).

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Grayscale says Fed pause could lift Bitcoin

Written by Liezl GambePublished Jul 23, 2026, 12:16 AM

Grayscale believes Bitcoin (CRYPTO:BTC) may have reached a market bottom.
The firm's view depends on the US Federal Reserve pausing interest rate increases.
The company expects lower rates could support demand for risk assets.

Grayscale's head of research, Zach Pandl, said Bitcoin (CRYPTO:BTC) may have reached its market bottom if the US Federal Reserve pauses interest rate hikes.

Pandl said lower interest rates could improve demand for Bitcoin and other risk assets by making borrowing costs cheaper.

“I think we have probably seen the bottom for Bitcoin,” Pandl said.

Pandl said the Federal Reserve's next policy decisions will likely have a bigger impact on Bitcoin than short-term market events.

Grayscale expects Bitcoin could benefit if inflation continues to ease and the central bank begins cutting interest rates later this year.

Bitcoin has often reacted to changes in US monetary policy because lower interest rates tend to increase investor appetite for higher-risk assets.

Grayscale has repeatedly argued that long-term adoption, growing institutional demand and supportive macroeconomic conditions could strengthen Bitcoin's market over time.

At the time of reporting, Bitcoin price was $66,177.13.