Grayscale: Bitcoin Put in the Bottom at $58,000, 'Green Light' From Here

Grayscale Head of Research Zach Pandl told clients Thursday that Bitcoin’s (CRYPTO: BTC) $58,000 June low was the cycle bottom and the firm is now giving a green light to allocate.

What Pandl Said About the Bottom

Pandl told The Block at Avalanche Summit in New York that Grayscale called the bottom at $58,000 at the end of June and he is sticking with that view. 

Bitcoin trades above $76,000 Thursday, up 1% over 24 hours, but still roughly 39% below its record high of around $126,000.

Grayscale uses a three-part framework before advising clients to allocate, covering the long-term structural trend, the stage of the market cycle, and the macroeconomic backdrop.

Pandl said all three conditions are now clear. “In my view, you can check all of those boxes today,” he said. “So we are certainly giving the green light to our clients.”

The call echoes Coinbase (NASDAQ:COIN) CEO Brian Armstrong, who said on September 10 that Bitcoin has bottomed for the current cycle and expects a two-year upward trend heading into the next halving.

Why Pandl Is Also Watching Zcash

Pandl also told The Block that Grayscale has offered a Zcash (CRYPTO: ZEC) investment product for roughly nine years, and his thesis rests on a gap that Bitcoin leaves open: privacy.