Five Key Factors May End Crypto Bear Market Soon
The crypto bear market has been ongoing for months, but smart money thinks it may be coming to an end soon. According to Fidelity Investments, five key factors have historically coincided with the end of previous bear phases.
One of these factors is Bitcoin's four-year cycle. The reward for mining new coin is cut in half every four years, and this event has triggered significant price movements in the past. If history repeats itself, the cyclical low could arrive between late September and mid-November 2026.
Fidelity also points out that regulation can play a crucial role in ending bear markets. The pending Clarity Act, which would settle which crypto assets fall under the purview of which regulators, has a low but real chance of passing before the end of 2026. If it's signed into law, it will be a major green light for the bear market to end and for a bull market to begin.
Another important factor is the adoption of big use cases. Real-world asset (RWA) tokenization has already started gaining traction, with $34.6 billion in on-chain value attributed to this practice. As long as more tokenization-related capital inflows continue, the entire sector will have a tailwind.
Finally, institutional capital flows are starting to move in the right direction for the bear market to end. With a $4.5 billion outflow from spot Bitcoin exchange-trade funds (ETFs) quickly reversed with a flood of $510 million of inflows during just three days in early July, the market may have already turned.