In its cryptocurrency market outlook report for the fourth quarter, Fidelity Digital Assets stated that it remains unclear whether the Bitcoin bear market has ended. Despite the recent recovery, the company indicated that more data is needed to confirm whether a new market bottom has been formed.
According to Fidelity's assessment, some investors are focused on whether the final bear market bottom will occur in November, in line with Bitcoin's four-year market cycle theory. However, the company emphasized that there is no guarantee that price movements observed in past cycles will repeat in the same manner in the future.
The report also suggested the possibility that Bitcoin may have reached its low in July. However, it was also noted that BTC could form a new low in November or later. Therefore, Fidelity argued that current market conditions should not be interpreted as a definitive transition to a bull market.
Nevertheless, the company pointed to some positive indicators suggesting the Bitcoin market is approaching a bottom. The fact that Bitcoin's price surged over 25% in just one week at the end of August was cited as one significant event indicating a strong market recovery.
Fidelity also noted that the ongoing expansion of blockchain activity is a positive signal for the Bitcoin market. The combination of increased on-chain activity and a strong price recovery supports the view that the market may be nearing its bottom.
However, Fidelity maintains that it is still too early to definitively declare the end of the bear market.
*This is not investment advice.
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