Bitcoin dropped below $60,000 this week, hitting a new cycle low and rattling traders who had hoped the worst was over. The decline comes as Grayscale's research team argues the asset may actually be undervalued by traditional metrics — and points to two catalysts that could determine whether the market has finally found a bottom.
Bitcoin's new cycle low
The world's largest cryptocurrency slid past the $60,000 threshold on Thursday, touching levels not seen since the current market cycle began. The move extended a weekslong slide that has erased gains from earlier in 2026 and left Bitcoin roughly 40% below its all-time high. Volume picked up during the selloff, but there was no single trigger — just a steady grind lower as sentiment soured.
Grayscale's valuation call
Grayscale, the digital asset manager, published an analysis this week arguing that Bitcoin looks cheap based on on-chain valuation models. The firm didn't name the exact metrics, but said its internal signals suggest current pricing is below what those models consider fair value. It's a contrarian take at a moment when most headlines focus on the pain — and it comes with a caveat: value alone isn't enough to turn the tide.
The two catalysts for a bottom
According to Grayscale, two catalysts could confirm that the market has bottomed. The firm didn't specify exactly what those catalysts are, but the implication is clear: without them, Bitcoin could drift lower or stay range-bound. The timing matters — the longer prices stay depressed, the more pressure builds on miners, exchanges, and leveraged traders. Grayscale's call isn't a prediction; it's a conditional framework. If both conditions hit, the undervaluation argument gets teeth. If they don't, $60,000 might not be the floor.
The question now is whether those catalysts will arrive soon enough — or at all. No one's calling a date yet.
