Grayscale Research: Bitcoin's Current Price May Be a Favorable Entry Point for Long-Term Investors
Bitcoin has approached the $80,000 mark, experiencing a 24% increase in just a week and breaking free from a six-week trading pattern. On August 24, it surpassed $78,330 and briefly touched $79,550, marking its highest point since early May. This upward movement is attributed to the U.S. Treasury's rise in long-term bond purchases, the liquidation of over $3 billion in short positions, and a decline in open Bitcoin contracts from 762,000 BTC to approximately 715,000 BTC. U.S.-listed Bitcoin funds saw inflows of $1.9 billion, the highest since October 2025. Grayscale Research suggests evaluating structural adoption, market cycles, and macroeconomic risks. In July, the Federal Open Market Committee held the federal funds rate steady at 3.5%-3.75%, with markets anticipating forthcoming economic data.
Key facts
- Bitcoin gained roughly 24% over the past week, breaking out of a six-week trading range.
- On August 24, Bitcoin rose above $78,330, briefly reaching $79,550, its highest level since early May.
- U.S. Treasury increased purchases of long-term government bonds to $4 billion per operation, from $2 billion.
- More than $3 billion in bearish Bitcoin positions were liquidated within 24 hours.
- Open Bitcoin contracts fell from 762,000 BTC on August 18 to about 715,000 BTC, the lowest level in two months.
- U.S.-listed Bitcoin funds attracted about $1.9 billion during the latest week, strongest weekly inflow since October 2025.
- Net inflows since the beginning of August reached approximately $2.38 billion.
- Grayscale estimates the current Bitcoin bear market is about 10 months old; previous four cyclical bear markets lasted an average and median of roughly 11 to 12 months.
- Federal Open Market Committee maintained the federal funds rate at 3.5%-3.75% at its July meeting, with three officials favoring a 25-basis-point increase.
- Bitcoin faces a critical technical test around $80,000; CryptoQuant highlights 68,000-73,000 as an important support zone.
Entities
Institutions
- Grayscale Research
- CoinMarketCap
- U.S. Treasury
- CoinGlass
- Farside Investors
- OKX SG
- Federal Open Market Committee
- Federal Reserve
- Rekt Capital
- CryptoQuant
- NFT Plazas
Locations
- United States
- Jackson Hole