Ex-SEC Chair Gary Gensler terms Bitcoin as speculative and volatile. Grayscale does not believe in the four-year cycle theory, with 2026 all-time highs in spite of market turbulence.
Former SEC Chair Gary Gensler rejuvenated cryptocurrency warnings. He described Bitcoin and digital assets as very speculative and volatile. This was said during a Bloomberg interview on December 2.
Gensler made Bitcoin comparatively more commodity-like. He emphasized that most tokens are not fundamental. The previous regulator was inquiring about the basis of thousands of alternative cryptocurrencies.
Risk Assets Dominate Crypto Landscape
Gensler underscored that these risks can only be known to the investing public. He observed that tokens yield no dividends. Most digital assets do not give investors traditional returns.
The previous SEC chairman was in office between 2021 and January 2025. His reign saw an intense crackdown on significant crypto intermediaries. Gensler continued in his regulatory position following his departure.
He referred to Bitcoin as not a security but recognized that it might change its role based on global demand. Stablecoins that were pegged to U.S. dollars were treated differently. These assets were not in his evaluation, like the speculative tokens.
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Centralization Replaces Decentralization Vision
Gensler noted that finance is naturally centrally concentrated as an antique. Decentralized principles were the beginning of the crypto ecosystem. The market structure has changed to integration and centralization.
Bitcoin ETFs transformed the dynamics in the market. ETF access is similar to how investors treat commodities such as gold and silver. This was a move that was contrary to the original decentralized vision of crypto.
CryptosRus on X says that Gensler is just executing the same regulatory playbook. The crypto activist doubted the relevance of his warnings. According to market participants, the industry has outgrown his concerns.
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Grayscale Challenges Traditional Market Theory
The four-year cycle thesis was completely dismissed by Grayscale Research. The company predicts that in 2026, Bitcoin will have new all-time highs. This approach counters conventional predictions based on halving.
As CoinMarketCap notes on X, the research team of Grayscale contends that the four-year cycle is dead. The asset manager predicts that Bitcoin will become unprecedented next year. Present market pullbacks are usual bull market outcomes.
Source: CoinMarketCap X
The company defines the present 27-percent decline as a usual bull market pullback. Grayscale argues that deep corrections do not indicate structural market tops. The historical trends indicate 25% down draws are common during uptrends.
This optimism is supported by Tom Lee of BitMine. He predicts that Bitcoin will reach new all-time highs by January 2026. Lee mentions the enhancement of the fundamentals despite price weaknesses.
Institutional Capital Reshapes Market Structure
This bull market did not experience a parabolic growth in price as compared to the previous cycles. Grayscale observes major shifts in the market. ETPs and digital asset treasuries are the sources of new capital flow instead of retail exchanges.
Institutional involvement develops market forces differently. ITPs have taken over investment flows. Corporate treasuries are currently large holders of Bitcoin.
The institutional investment caused by regulatory clarity will probably be the basis of further growth. Grayscale believes in the convergence of fundamentals and valuations. The company is still positive about crypto markets in 2026.
Markets are waiting for the decision of the Federal Reserve on December 10. The Fed policy will become a strong fuel for 2026. The expectations concerning a rate cut have risen by 63 to 87 percent recently.
