Home / Business and Economy / Crypto Winter Thaw? Fidelity Signals End of Bear Market
Crypto Winter Thaw? Fidelity Signals End of Bear Market
25 Jul
Summary
- Bitcoin's four-year cycle, tied to mining reward halving, is key.
- Regulatory clarity, like the Clarity Act, could boost crypto.
- Tokenization of real-world assets is a growing use case.
The crypto bear market, marked by declining prices for major coins like Bitcoin and Ethereum, may be nearing its end, according to analysts at Fidelity Investments. They point to several historical indicators, including Bitcoin's four-year cycle driven by halving events, which suggests a cyclical low could arrive between late September and mid-November 2026. Alternatively, if current price levels represent the bottom, the remainder of 2026 might see sideways price action.
Regulatory developments are also a crucial factor. The potential passage of the Clarity Act before the end of 2026 could significantly impact the market, potentially signaling a transition from a bear to a bull phase. While Bitcoin may benefit indirectly, cryptocurrencies such as XRP, Ethereum, and Solana could see more direct advantages due to their ecosystems' sensitivity to compliance.
Furthermore, a major use case adoption, specifically the tokenization of real-world assets (RWAs), is gaining traction. This process, currently valued at $34.6 billion on-chain, represents traditional assets as crypto tokens. Continued capital inflows into tokenization efforts are expected to support the entire crypto sector, with Solana, Ethereum, and XRP competing to become hubs for these tokenized assets.
