PANews reported on December 2nd that, according to a recent report from Grayscale, Bitcoin's 32% pullback since early October is in line with historical averages, marking the ninth significant pullback in the current bull market. Grayscale believes that Bitcoin may not enter a deep cyclical downtrend, predicting its price could reach new highs next year, and questions the applicability of the four-year cycle theory.

The report points out that this bull market has not seen the parabolic rise of past cycles, and the market structure has also changed. Funds are mainly flowing in through exchange-traded products (ETPs) and digital asset vaults (DATs), rather than retail trading. Furthermore, privacy-oriented crypto assets have performed exceptionally well, with Zcash rising 8%, Monero increasing by 30%, and Decred surging by 40%. Meanwhile, the first ETPs for XRP and Dogecoin have begun trading.

Grayscale also noted that the Federal Reserve may cut interest rates again at its December 10 meeting, and the progress made by both parties in US bipartisan legislation on crypto could provide further positive news for the market. Despite continued market volatility in the short term, Grayscale remains optimistic about the crypto market outlook for 2026 and emphasizes the importance of long-term holding.