Woofun AI notes that Bitcoin has declined over 50% from its October 2025 high of approximately $125,000, falling below $60,000. Grayscale attributes this pullback to hawkish Federal Reserve expectations, uncertainty surrounding the "CLARITY Act," Strategy's leverage pressures, and quantum computing security concerns. The firm outlines two potential paths: a baseline scenario where legislative progress and balanced sheets signal a cycle bottom, or a pessimistic case involving bill failure and rate hikes that could drive further declines. Despite these risks, Grayscale maintains a long-term bullish stance on public blockchain growth.