Bitcoin’s recent pullback from its all-time high and struggles to hold $100,000 after a Fed-triggered selloff should be “no reason to panic,” according to Grayscale’s Director of Research, Zach Pandl. In an interview with Coinage, he said he remains optimistic about Bitcoin’s long-term prospects thanks to a supportive macroeconomic backdrop, growing adoption driven by Bitcoin ETFs, and a pro-crypto shift in U.S. politics.
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While the Federal Reserve’s tempered outlook on rate cuts has temporarily boosted the dollar and weighed on Bitcoin, Pandl views this as a short-term headwind within a positive long-term trend. He believes Bitcoin’s current price movement reflects its increasing role in global finance and describes it as a $2 trillion asset integrated into the broader macroeconomic system.
Pandl highlighted Bitcoin’s growing competition with major currencies like the Euro (EUR-USD) and Yen (USD-JPY) and noted that the current stage of the crypto cycle may favor altcoins. With Bitcoin dominance declining in line with historical trends, he suggested an upcoming “altcoin season” could bring outperformance and offer opportunities for crypto investors.
Regulatory Clarity Is a Game Changer
Looking ahead, Pandl sees regulatory clarity under the new U.S. administration as a game changer, particularly for staking and institutional adoption. He predicts that pension funds, endowments, and sovereign wealth funds will be major buyers. Additionally, Pandl emphasized the convergence of crypto and artificial intelligence as a major growth driver for 2025. His message to investors is to stay focused on crypto’s long-term growth potential, as the industry has strong tailwinds despite short-term volatility.
Is Bitcoin a Buy?
Using TipRanks’ technical analysis tool, the indicators seem to point to a positive outlook for Bitcoin. Indeed, the summary section pictured below shows that 14 indicators are Bullish, compared to three Neutral and five Bearish indicators.
