Bitcoin could potentially retest its all-time high later this year if the U.S. economy avoids a recession, according to Grayscale Research. Despite recent volatility in the crypto market, analysts at Grayscale Research predict that prices could climb higher in the coming months.

In an August 8 research report, Grayscale analysts suggested that if the U.S. economy achieves a “soft landing” and avoids recession, token valuations could rebound. They highlighted that Bitcoin might revisit its all-time high later this year.

Shifts in the U.S. political landscape around the crypto industry may also reduce downside risks to valuations compared to past cycles.

The firm noted that even in a weaker economic environment, downside risks may be more limited than in past cycles. This is due to steady demand from newly listed U.S. exchange-traded products and subdued altcoin returns.

Looking ahead, market stability will depend on upcoming macroeconomic data and central bank policies. Events like the Federal Reserve’s September meeting and the Jackson Hole Symposium are expected to play a key role in shaping the environment.

Bitcoin Wins in Any Scenario

Grayscale Research remains optimistic regardless of the scenario. They suggest that even a period of economic weakness could strengthen the long-term investment case for Bitcoin, particularly given the ongoing undisciplined approach to monetary and fiscal policy.

As of press time, Bitcoin is trading above $60,000, having rebounded from a Monday dip that briefly saw its price fall below $50,000. Bitcoin has thus far held its $50,000 support level, fueling speculation that whales are continuing to accumulate at current prices. This could signal potentially higher moves later on, especially as Bitcoin typically trades within a relatively low price range during September and October.

For more updates and the latest news in the cryptocurrency world, stay tuned to Global Crypto News.

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