Breaking: Grayscale Hints At Monthly Bear Market Time Frame For Next 8 Months

Just as Bitcoin breached $22,000 range on Monday, much of the talk is on if Bitcoin bottom is potentially in already. However, several big investors caution against hurrying up to take a position right away. In the meanwhile, Grayscale came up with a report on the whereabouts of the ongoing Bitcoin bear market cycle.

Duration Of Crypto Market Cycles

The digital currency investing company observed that crypto markets too flow in cycles, just like financial markets. On an average, crypto market cycles last nearly four years, it said, adding that Bitcoin’s realized price could be effective in gauging the cycle timeline. The Bitcoin realized price is the total of all purchase values divided by the number of BTC in circulation currently.

The Grayscale report indicates that the Bitcoin realized price went below market price last week, which signals the arrival of bear market. It also suggested that the bear market could prolong to as many as eight months from now.

“As of June 13, the realized price of Bitcoin crossed below the market price signaling that we may officially have entered a bear market. Just 21 days into this zone, we may see another 250 days of high value buying opportunities when compared to previous cycles.”

When Will Bitcoin Show Upward Movement?

The current cycle, which began in 2020, could witness another four months until any progressive movement is shown, the report added. After four months, there is possibility that the realized price could come back to above the market price. Going forward, this helps in finding when the market begins to move out of bear market, Grayscale said. Also, Bitcoin is 222 days off the all time high, which means we may see “another 5-6 months of downward or sideways price movement.”

Interestingly, Bitcoin’s movement in the all time high range last year was longer than in previous cycles. This was because of “the growing maturity of the crypto market” this time around, Grayscale explained. As of writing, BTC is trading at $22,218, rising 4.35% in the last 24 hours, according to price tracker CoinMarketCap. On a weekly basis, Bitcoin is up by around 8%.

Last month, the U.S. SEC authorities declined approval for converting Grayscale’s Bitcoin Trust into a spot ETF. Following this, Grayscale took legal action against the commission over the denial.