The current Crypto Bull Market has been driven by a combination of macro -demand for scarce digital assets and growing legislative clarity, said two forces that are expected to continue to shape investor focus in the last quarter of 2025, Asset Manager Grayscale in a report Wednesday.
According to Grayscale, the Federal Reserve’s decision to resume interest sections in September and its signal that one or two additional cuts could follow by the end of the year must generally be considered supportive of digital assets.
Lower borrowing costs, noticed gray scale, reduce the option of keeping non-providing ingredients such as Bitcoin And can encourage wider risk appetite across markets.
At the same time, the analysts warned that a declining economy or escalating geopolitical risks could dampen valuation. They also highlighted the possibility that an unexpectedly fed pivot back to rate hiking would pose a clear downward risk.
On the legislative side, gray scale pointed to several potential catalysts that could continue to draw the investor’s attention. These include the introduction of efforts within Crypto-Exercise Products (ETPs), approval of new ALTCOIN-based ETPs and the potential passage of a market structure bill in the Senate.
While each of these developments would represent meaningful progress, gray scale warned that markets have already priced in a good amount of optimism.
Any setbacks, whether delays, political pushback or direct rejection could weigh valuations, the report added.
Read more: Crypto’s value is on trillion dollars markets, Bitwise says
