Bitcoin’s price continues to hover above the $90,500 level, a sight not seen for a long time. Meanwhile, altcoins such as SHIB gain 15%, adding to the excitement among crypto investors. Amidst the fatigue felt by these investors, the sudden recovery brings a wave of enthusiasm. Zach Pandl, the Head of Research at Grayscale, shares his forecasts for developments until June.
Unexpected Turn for Bearish Traders
Over the past three months, many investors sold their Bitcoin holdings, anticipating a downturn in 2026 as indicated by Bitcoin’s four-year cycle. This expectation strengthened following the October 10 decline, yet Bitcoin did not fall below $80,000 as predicted in December. Currently, its resurgence past $90,500 raises questions among bears about the end of the cycle story.
If the crypto market‘s nature continues to surprise, this uptrend might accelerate, causing panic among those who sold in the last three months. For altcoin holders who perceived deeper lows during last year’s drastic drop and year-end close, fear of missing out could drive more purchases, potentially fueling the rise.
Forecasts for June 2026
The two FUDs in January have already been priced in. Unless crypto reserve firms plunge into a bearish spiral selling billions worth of cryptocurrencies due to MSCI decisions, the crypto rally might persist. Moreover, Trump is set to announce the new Fed Chair by the end of the month. Typically, in May, Powell would hand over to a new “dovish” leader.
Could Powell step down earlier? When Gensler departed, Trump transformed the SEC into a crypto-friendly entity. Similarly, when Powell exits, he could shape the Fed to be crypto-friendly and dovish. The approach of midterm elections this year makes it sensible to accelerate monetary expansion and allow crypto prices to rise.
In an interview with CNBC, Zach Pandl from Grayscale shared that 2026 could mark the beginning of crypto’s “institutional era.” He speculates Bitcoin may achieve a new all-time high in the first half of 2026, supported by numerous reasons.
- The growing demand for alternative value storage amid global macroeconomic uncertainties.
- The U.S. dollar experiencing further weakening.
- An acceleration in Fed’s interest rate cuts.
- Progress in bipartisan legislative efforts regarding the U.S. crypto market structure.
Most importantly, as discussed earlier, the “four-year cycle story” collapsing could panic sellers from the past three months.
