Odaily Planet Daily reports that Zach Pandl, Research Director at digital asset management firm Grayscale, said the structural adoption trend for Bitcoin continues, with the current bear market having entered a deeper phase; the overall macroeconomic outlook remains favorable, and three factors may provide a rationale for long-term investors to enter, though prices could still decline.
Grayscale notes that the growth in Bitcoin adoption is primarily driven by government deficits, expanding blockchain applications in the financial services sector, and generational shifts in investor asset allocation. The current bear market has lasted 10 months, nearing the average and median duration of 11 to 12 months observed in the previous four cyclical bear markets.
Macroeconomic risks primarily depend on real interest rates and Federal Reserve policy. The Federal Open Market Committee maintained the federal funds rate at 3.5% to 3.75% in July; further rate hikes could push Bitcoin lower. Bitcoin rose to $79,461 on August 21 before retreating to around $77,000. (Bitcoin.com News)