Bitcoin Winter Over, New Bull Cycle Imminent According to Fidelity
Fidelity's Head of Global Macro, Jurrien Timmer, believes that Bitcoin has finally emerged from its 'winter' phase. This comes as the asset reclaimed $80K after a 6% surge on Friday. One reason for this optimism is that BTC has held above $60K for about a year.
Timmer points out two key signals: the 1-year Bitcoin winter and the BTC/gold correlation turning positive. He sees these as confirmation of a durable bottom and potential early innings into the next bull cycle run.
According to Timmer, this could be the start of a new 4-year cycle bull market. This is because a typical Bitcoin winter lasts about one year, and the current market conditions seem to be in line with this pattern.
Fidelity expects the government to respond to rising bond yields by printing more money, which will lead to inflation from U.S government intervention. As a result, Timmer believes that demand for scarce assets like Bitcoin and gold could increase.