Bitcoin to Reclaim ATH Amid Market Rebound: Grayscale

If you’ve been keeping an eye on the charts lately, you’ve probably noticed Bitcoin (BTC) climbing back with confidence. After months of mixed sentiment, the world’s largest cryptocurrency is showing signs of strength once again. According to Grayscale, Bitcoin could soon reclaim its all-time high (ATH) as broader market conditions improve.

At BTCRepublic.com, we break down what’s fueling this recovery, how Grayscale’s outlook adds weight to the momentum, and what it could mean for traders and long-term holders. The big question now: Is Bitcoin’s comeback just a bounce — or the start of a new rally?

Key Takeaways

Facts & Original Research

Grayscale’s latest report isn’t the only bullish signal in the market. Data from CoinShares shows over $900 million in weekly inflows to Bitcoin investment products during August, the highest since early 2024. Analysts say this reflects growing conviction that BTC’s next move could challenge its previous ATH near $73,800.

What Grayscale Said

In a recent market report, Grayscale stated that Bitcoin appears ready to reclaim its all-time high, pointing to growing institutional demand and stronger on-chain activity. The firm highlighted that investor confidence has improved as global liquidity returns to risk assets.

According to Grayscale analysts, Bitcoin’s ability to hold above key support levels shows “renewed structural strength”, the kind seen before past bull runs. They also noted that stable ETF inflows and miner revenue growth suggest a steady foundation for long-term price recovery. In short, Bitcoin’s fundamentals are aligning with market optimism for the first time in months.

Bitcoin Will Hit Record Highs Later This Year 

The digital asset manager believes that the ongoing market recovery from recent lows could extend to the end of the year and pave the way for a rally to all-time highs. 

“If the US economy avoids recession and remains on a path to a ‘soft landing,’ we expect token valuations to rebound and Bitcoin to retest its all-time high price later this year,” it said. 

Conversely, the possibility of a recession spells doom for the cryptocurrency industry. However, it stated that this downside risk will be more limited compared to previous predictions. 

The asset manager pointed to the changed dynamics across the crypto market. US-listed spot Bitcoin exchange-traded funds (ETFs) continue to post a steady net demand. Despite the ongoing market uncertainty, spot Bitcoin ETFs saw $192 million in net inflows on August 8, marking the second-highest level of inflows in over two weeks. 

The analysis added that the uncertain macro outlook was certainly worrying and posed a short-term risk to investors. However, policymakers will step in to prevent a deep economic downturn, with measures like money printing helping to support further gains. 

Ethereum Underperforms Amid Crypto Price Rebound 

The report further noted that after prices crashed on August 5 following the weaker-than-expected US employment data, Ethereum continued to underperform. 

ETH has higher volatility than BTC, with its recent underperformance being more pronounced. Since the beginning of the month, ETH’s price has dropped around 1.8x as much as Bitcoin’s price, showing additional downward pressure on the largest altcoin. 

The asset manager attributed the poor performance to “outsized long positioning in perpetual futures.” Traders increased their positions in May after the approval of 19b-4 forms for spot Ether ETFs in anticipation of further price gains upon final approval. 

Most of the long positions were liquidated during the recent downtrend. On August 5, the ETH price tanked by over 20%. The sell-off has seen the price drag behind Bitcoin and altcoins like Solana.

ETH was trading at $2,672 at the time of writing after a 10% gain in 24 hours. The altcoin has remained down by 15% in the past week. 

According to trader @Ali-Charts, ETH is now headed for a bold recovery after forming a bull pennant on lower time frames. The next target for ETH is $2,820. 

Market Context & Recovery Data

Bitcoin’s rebound comes after a steady two-month upswing that lifted its price from $58,000 to over $69,000, narrowing the gap to its previous ATH near $73,800. The recovery followed increased liquidity, ETF inflows, and a renewed appetite for digital assets among institutional investors.

Compared to other major coins, Bitcoin has shown the most stable growth. Ethereum (ETH) gained around 12% during the same period, while Solana (SOL) jumped 18% as network activity expanded.

The data shows Bitcoin leading the recovery, supported by solid fundamentals rather than short-term speculation.

Institutional Sentiment & ETF Impact

Institutional investors have played a major role in Bitcoin’s latest recovery. Spot Bitcoin ETFs in the United States continue to attract steady inflows, signalling renewed trust in crypto as an asset class. Grayscale’s Bitcoin Trust (GBTC), along with funds from BlackRock and Fidelity, saw consistent buying throughout the last quarter.

This shift shows that large investors are no longer waiting on the sidelines. Institutions are treating Bitcoin as a long-term store of value rather than a high-risk trade. The ETF market now provides a transparent, regulated entry point for global capital — a key factor driving Bitcoin closer to its previous all-time high.

On-Chain Strength & Network Health

Behind Bitcoin’s price rise is a network that remains strong and active. Daily transactions climbed above 600,000, while active addresses surpassed 1.1 million, the highest in over a year. Exchange outflows also increased, suggesting more investors are moving coins to self-custody wallets, a common sign of long-term confidence.

Mining activity remains healthy, with the Bitcoin hashrate near record highs and miner revenues up 22% month-over-month. These trends reflect a secure and growing network. According to data from Glassnode, the current MVRV ratio suggests the market is still below overheated levels, leaving room for sustainable upside.

Global Market Drivers

Bitcoin’s rebound is unfolding as global markets stabilise. Falling inflation in the U.S. and Europe and talk of interest rate cuts have encouraged investors to reenter risk assets like crypto. A softer U.S. dollar index (DXY) and strong equity performance have added more fuel to the recovery.

At the same time, countries such as Japan, South Korea, and the UAE are expanding institutional access to Bitcoin ETFs, widening global exposure. These shifts show how macro conditions and international demand are creating a favourable backdrop for Bitcoin’s climb back toward its all-time high.

Technical Overview 

Bitcoin’s chart shows a clear recovery pattern. After consolidating near $58,000, BTC broke above the $65,000 resistance and has been holding near $69,000–$70,000 for several sessions. This strength points toward a possible retest of the $73,800 all-time high zone.

Support now sits near $63,500, where previous resistance turned into a base. If Bitcoin keeps steady trading volume and avoids sharp pullbacks, analysts expect a potential push beyond $75,000 in the coming weeks. The trend remains bullish, with long-term momentum favouring continued upside.

What This Means for Investors

For investors, Grayscale’s outlook highlights how Bitcoin’s recovery is being driven by fundamentals, not hype. The combination of strong ETF inflows, rising on-chain activity, and global institutional demand signals growing maturity in the market.

While this isn’t investment advice, the message is clear: Bitcoin is regaining its role as a long-term store of value. Short-term pullbacks may happen, but the broader trend shows increasing stability. For both new and seasoned holders, patience and consistent accumulation during periods of consolidation could offer better outcomes than chasing short-term price moves.

Risks & Caution

While optimism is building, Bitcoin’s path back to its ATH isn’t risk-free. Sudden ETF outflows, unexpected regulatory actions, or a sharp drop in global liquidity could slow the rally. Analysts also point out that leveraged trading across exchanges remains high, raising the risk of short-term pullbacks.

Network fundamentals remain strong, but investors should remember that volatility is part of Bitcoin’s cycle. A healthy correction may occur before any decisive breakout above the $73,000–$75,000 range. Staying focused on long-term data and fundamentals remains key during periods of fast price movement.

Final Thoughts

Bitcoin’s latest rally has reignited optimism across the crypto market, and Grayscale’s research adds credibility to that sentiment. With strong ETF inflows, rising network activity, and improving global conditions, BTC now sits within reach of its previous all-time high.

The foundation looks stronger than in past cycles, less hype, more substance. Bitcoin’s climb isn’t magic; it’s momentum built on usage, demand, and trust. As markets steady and institutions deepen involvement, the next milestone may be closer than many expect.

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