Fidelity Warns Bear Market May Not Be Over Despite Strong Bitcoin ETF Inflows

Fidelity's fourth-quarter crypto market outlook warns that despite strong inflows into spot Bitcoin ETFs, the current bear market may not be over yet.

In August, Bitcoin posted its strongest monthly gain since November 2024, but Fidelity says this rally does not confirm the end of the bear market. In fact, Chris Kuiper, vice president of research at Fidelity Digital Assets, notes that the cycle's low may have already formed back in July or it could set a new low in November.

The asset manager points to stablecoin transaction volumes and real-world asset tokenization growing even as the total crypto market cap fell. This resilience suggests sellers are losing steam, according to Kuiper. However, Fidelity cautions that adoption of digital assets has happened in waves, which can perpetuate cycles.