Bitcoin (CRYPTO:BTC) has retreated sharply from its early-October peak, unsettling traders and reviving concerns that the market could be heading towards a prolonged downturn into 2026.
The recent decline has coincided with wider macroeconomic uncertainty, prompting some investors to question whether the current bull phase has already lost momentum.
Grayscale Research, however, has challenged this cautious narrative, arguing that Bitcoin still has the potential to set new all-time highs next year.
In a new report, the asset manager suggests that common assumptions around Bitcoin’s market structure may no longer apply in the current environment.
Grayscale casts doubt on the long-standing four-year cycle theory that links Bitcoin price movements directly to halving events.
Historically, those cycles have been characterised by explosive rallies followed by deep corrections, but Grayscale notes that this pattern has not clearly emerged in the current cycle.
Analysts at the firm highlight that Bitcoin has yet to experience the kind of steep, parabolic price surge typically associated with market overheating.