Grayscale’s Bold Call: Bitcoin Primed for New Highs in 2026, Ignoring Short-Term Noise

Grayscale just threw a gauntlet at the bears.

The asset manager's latest analysis cuts through the current market jitters, pointing squarely at 2026 for Bitcoin's next major breakout. It's a long-game perspective that bypasses the daily volatility gripping traders.

The 2026 Thesis

Forget the recent dip. The firm's framework suggests the foundational elements for a new cycle peak are aligning, not for tomorrow, but for the year after next. It's a timeline that demands patience from an industry addicted to instant gratification.

Context Over Chaos

Their view reframes the current price action as mere noise against a much larger signal. While portfolios bleed red today, the analysis implies structural factors—often invisible on a chart—are quietly building pressure.

A Dose of Realism

Of course, this is finance. For every prophetic prediction, there's a hedge fund manager sipping champagne on a yacht funded by being right once in 2017. Grayscale's call is compelling, but in this game, conviction is just another tradable asset.

The message is clear: the road to the next peak might be bumpy, but the destination is already on the map.

In brief

• Grayscale Research suggests Bitcoin could reach new all-time highs based on a new market dynamic that differs from previous four-year cycles.
• Similarly, Tom Lee of Fundstrat projects Bitcoin could hit a new all-time high by the end of January.

Rethinking the Four-Year Cycle

Grayscale’s research casts doubt on the widely held belief that Bitcoin strictly follows a four-year cycle linked to halving events, in which the supply of Bitcoin changes every four years. Historically, these cycles were associated with years of price gains followed by sharp corrections. Analysts at Grayscale argue that the current cycle is distinct. Unlike previous runs, Bitcoin has not experienced a steep, parabolic surge that typically signals overheating, suggesting a different market dynamic at play.

The firm also observes a significant shift in investment patterns. Traditional retail platforms are now being overtaken, with most new Bitcoin capital moving through corporate treasuries and exchange-traded products. This structural change, combined with supportive macroeconomic conditions such as potential interest rate cuts and bipartisan backing for cryptocurrency legislation in the U.S., is reinforcing positive sentiment. Grayscale emphasizes that while short-term fluctuations remain, the most substantial gains are likely to come from long-term holding rather than short-term trading strategies.

Although the outlook is uncertain, we believe the four-year cycle thesis will prove to be incorrect, and that Bitcoin’s price will potentially make new highs next year

Bitcoin’s Near-Term Trends

Tom Lee, CEO of Fundstrat, echoes this bullish view, projecting that bitcoin could reach a new all-time high by the end of January. He points out that the recovery of equity markets and a potentially more dovish Federal Reserve could restore investor confidence, benefiting both Bitcoin and the broader cryptocurrency market. Lee notes that shifts in Fed policy and overall market sentiment act as key drivers, influencing the potential for further gains.

In the NEAR term, analyst Ted Pillow highlights that Bitcoin’s Open Interest (OI) is undergoing a reset. Following the October 10th crash, Bitcoin’s open interest rose sharply, but it has since fallen as market participants have been winding down their positions. Pillow explains that until OI fully stabilizes, BTC is unlikely to demonstrate a clear directional move, as heightened volatility on both sides continues to shape short-term market behavior.

Despite the recent price dip and market uncertainties, the combined perspectives of Grayscale, Tom Lee, and Ted Pillow suggest that Bitcoin’s long-term outlook remains favorable. The market may experience short-term fluctuations, but underlying factors point to potential gains for those holding Bitcoin over the coming years.

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