Bitcoin Seen Thriving Amid Geopolitical Tensions and Currency Debasement
Fidelity International, one of the world's largest asset managers, believes Bitcoin may still have significant growth potential. In its 2026 Digital Assets Outlook, Fidelity argues that rising geopolitical tensions and concerns over currency debasement are creating conditions where Bitcoin tends to thrive.
The report notes that despite a 30% sell-off in October 2025, which saw $1 trillion in market value wiped out across the broader crypto sector, this was 'modest by historical standards'. The sell-off was triggered by cascading leveraged liquidations.
Fidelity highlights Bitcoin's fixed supply of 21 million coins and its independence from any single government's monetary policy as key attractions. The firm also points to growing institutional involvement in Bitcoin, with corporate treasuries, sovereign wealth funds, and private banks allocating to it.
The report notes that beyond simply holding Bitcoin, institutions are increasingly using it for collateralization, lending, and derivatives markets. Fidelity emphasizes the need for institutional-grade risk management infrastructure to support these use cases.