Grayscale’s head of research, Zach Pandl, said Bitcoin (BTC) has already marked its cycle bottom after falling to $58,000 at the end of June, with the firm now advising clients to consider allocating fresh capital to the asset. Speaking in a recent interview with The Block, Pandl said the leading cryptocurrency has not only bottomed but also reached a point where investors can begin considering new allocations.

“We have stuck our neck out over the last couple of months and attempted to call the bottom at 58K at the end of June,” he noted, adding that “That would still be my view that that was the bottom for this bear market phase.”

Pandl said Grayscale considered three factors before determining that investors could begin allocating to Bitcoin again: the long-term structural trend, the stage of the market cycle, and prevailing macroeconomic conditions. In his view, all three conditions are now in place.

“In my view, you can check all of those boxes today…So we are certainly giving the green light to our clients.”

Bitcoin Builds Toward a Stronger Breakout

FinanceFeeds’ analysis of Bitcoin on the daily timeframe shows a broadly bullish setup, although a stronger rally still depends on further technical confirmation. Bitcoin recently breached its lower high before rallying and is now consolidating within what appears to be a bull flag.

A breakout from the triangle consolidation, followed by a move above the level marked Local High, could confirm the start of a stronger uptrend. The Volume-Weighted and Accumulation/Distribution indicators also support the bullish setup, with the A/D indicator reaching 12.74 million as accumulation builds within the pattern.

Bitcoin forms a bull flag as accumulation rises, with a breakout above key resistance potentially opening the way for further gains. Source: TradingView

Investor Takeaway

Grayscale’s green light adds to the case for renewed Bitcoin allocation, but investors will still need to watch for confirmation above key resistance levels.

Zcash Gains as Privacy Concerns Meet AI Growth

Pandl also highlighted Zcash (ZEC) as a token to watch, pointing to its privacy features as a potential complement to Bitcoin.

“Bitcoin needs a privacy layer, digital currencies need a privacy layer, Bitcoin is missing that.”

He added that he does not expect Zcash to compete directly with Bitcoin. Instead, he sees the privacy technology behind the asset as an “underutilized, under-explored design space” that could gain greater relevance in the market.

Pandl expanded on that thesis at the Bulled Up Avalanche Summit, where he linked Zcash’s recent rise to growing concerns about the potential risks associated with artificial intelligence. While the interviewer described the relationship as reflexive, with ZEC gaining as concerns over AI increase, Pandl positioned Grayscale on the optimistic side of the debate, saying “we are AI optimists.”

“That being said, new technology does create new risks. There’s a kind of dark side of the force, if you will.”

He then framed Zcash’s privacy technology as a potential safeguard against those risks. “In our view, [Zcash] is a very special piece of technology that helps ensure user autonomy in a world of potentially high powered AI surveillance,” he said, calling it “a mega trend in society, well beyond crypto, well beyond technology” that would “play out over the coming years, not just a short term trend.”

Zcash rises 177% in 30 days as ZEC trades above $1,400, with MFI and Parabolic SAR supporting the bullish technical setup. Source: TradingView

Zcash has also recorded a strong price increase. In the past 30 days, CoinGlass reports that ZEC is up 177% and is trading above $1,400 per token. Analysis of ZEC on the Binance daily chart shows the asset trading in a price-discovery zone, with technical indicators pointing to continued upside potential. The Money Flow Index (MFI), which tracks capital flows into and out of an asset, remains in bullish territory at 59, while the Parabolic Stop And Reverse (SAR) has formed dots below the price, another indication that the current upward trend remains intact.

Investor Takeaway

Zcash’s privacy technology could become increasingly relevant as AI-driven surveillance concerns grow, giving ZEC a distinct investment narrative beyond its recent price momentum.