Grayscale Presents Criteria for Bitcoin Price Assessment

Grayscale has identified structural adoption trends, market cycles, and macroeconomic risks as variables for assessing Bitcoin (BTC) prices. They noted that there remains a possibility of further declines depending on the Federal Reserve's interest rate trajectory. Jack Pange, head of Grayscale Research, stated in an analysis on the 21st that these three factors could serve as references for price assessment from a long-term investment perspective. The first rationale mentioned is the long-term adoption trend of Bitcoin, explaining that the increase in government debt and the expansion of blockchain utilization are the backdrop for discussions on Bitcoin demand. The second rationale is the market cycle, indicating that the current Bitcoin bear market has lasted about 10 months, while past bear markets typically lasted 11 to 12 months. The third variable is macroeconomics, with the Fed's interest rate path identified as a major uncertainty. They warned that if interest rate hikes resume, Bitcoin could face additional downward pressure. Grayscale has outlined the criteria to consider when assessing Bitcoin prices and advised against approaches aimed at timing the market. Korean investors should be cautious of changes in interest rates and preferences for risk assets.

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