Grayscale Says Fed Policy Holds the Key to Bitcoin's Next Move

Bitcoin might stay under pressure until September or October if its traditional four year cycle plays out again, according to a recent report from asset manager Grayscale. Yet the firm points out that macroeconomic factors now play a much bigger role in shaping price action than past historical cycles.

Zach Pandl, head of research at Grayscale, notes that Bitcoin could already be at a bottom if the Federal Reserve decides to pause further interest rate hikes. Market participants are watching inflation data and central bank meetings closely for clues about future monetary policy, since lower rates typically benefit risk assets like crypto.

Traders should keep an eye on upcoming macroeconomic announcements and central bank signals over the next few weeks. If economic growth holds steady and the Fed stops raising rates, Bitcoin could finally break out of its current sideways trend.