Fidelity's Yardstick Suggests Bitcoin Market Bottom Nearing

Fidelity Digital Assets has released its Q3 Signals Report, indicating that Bitcoin may be nearing its market bottom. The company's Yardstick metric, which compares Bitcoin's market capitalization to network hashrate via a normalized Z-score, is currently hovering near historic lows.

This suggests that BTC may be trading at a substantial discount relative to the energy securing the network, according to Fidelity. Historically, this undervalued zone has aligned with accumulation phases and relative bottoms, which lasted almost 300 days in previous cycles.

The report also notes that the current bear market has experienced 203 days to date, suggesting October 2026 may represent a key timeframe for investors focused on cycle dynamics. Joao Wedson, founder of Alphractal, agrees, stating that Bitcoin is approaching a historically important zone.