Fidelity Warns Bear Market May Not Be Over Despite Bitcoin's Strongest Monthly Gain Since November 2024

Fidelity's recent crypto market outlook report reveals that Bitcoin recorded its strongest monthly gain since November 2024 in August, but this advance does not confirm that the latest bear market has ended.

The report notes that despite the rally, there is no guarantee that the bear market is over. Chris Kuiper, vice president of research at Fidelity Digital Assets, said that adoption has historically occurred in waves that can help sustain market cycles.

Kuiper also pointed out that the recent volatility shift from lower volatility to a sharp upward expansion could be a possible sign that sellers are becoming exhausted. This pattern is similar to previous bear-market endings.

The report highlights that Bitcoin's transition from lower volatility to a sharp upward expansion was followed by a retreat, indicating that the market may be consolidating after the advance.