Fidelity: Crypto Market Remains in Prolonged Bear, BTC Dominance Rises

The latest Q3 report from Fidelity Digital Assets Research Team has shed light on the current state of the crypto market. The weighted NUPL (Net Unrealized Profit/Loss) has dropped to -0.01, indicating that the market as a whole is slightly below the break-even line.

This negative figure is largely driven by the performance of ETH and SOL, which have both entered unrealized loss territory. In contrast, BTC remains in unrealized profit, but its dominance rate has risen to 68%, suggesting that investors are increasingly favoring this asset over others.

The report also notes that multiple indicators have approached or reached historical panic zones, with spot ETP flows remaining negative and the market experiencing high short-term volatility. However, Fidelity suggests that the current valuation levels may provide attractive entry points for long-term investors, provided that adoption trends continue to strengthen.