Grayscale's research head Zach Pandl argues that Bitcoin's structural adoption trend persists, and the current bear market has entered a deeper phase, even as the macro backdrop remains generally favorable.

He cited three drivers that may support long-term investors: deficits widening government spending, broader use of blockchain technology in financial services, and generational shifts in asset allocation. The downturn has persisted for roughly 10 months, nearing the length of earlier cycles, which averaged 11 to 12 months.

Pandl noted that macro risks depend on real interest rates and Federal Reserve policy. The Federal Open Market Committee left the federal funds rate at 3.5% to 3.75% in July, with further hikes posing downside risk for Bitcoin.

Bitcoin briefly rose to $79,461 on August 21 before retreating to around $77,000.