The current Crypto Bull Market is driven by a combination of two forces expected to continue to form investors' focus in the final quarter of 2025, a combination of two forces expected to form investors' focus in Wednesday's report, the growing clarity of regulations.
According to Grayscale, the Federal Reserve decision to resume rate cuts in September and the signal that one or two additional cuts could continue before the end of the year should generally be considered in favor of digital assets.
According to Grayscale, the reduction in borrowing costs reduced the opportunity cost of holding non-Yield-holding goods such as Bitcoin BTC$117,144.86 It can promote a wider risk appetite across the market.
At the same time, analysts warned that economic decline or escalating geopolitical risks could reduce valuations. They also highlighted the possibility that unexpected Fed pivots could pose clear negative side risks back on rate hiking.
On the regulatory side, Grayscale pointed out some potential catalysts that could continue to attract investors' attention. These include the introduction of staking within crypto exchange products (ETPs), the approval of a new Altcoin-based ETP, and the potential passage of the Market Structure Bill in the Senate.
Although each of these developments represents meaningful advancements, Grayscale warned that the market is already priced with a substantial amount of optimism.
Retreats of either delays, political pushbacks, or complete rejection can be weighed, the report added.
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