Fidelity 2026 Outlook: More Countries May Adopt Bitcoin as Reserve Asset, Four-Year Cycle Disappearance Still TBD

BlockBeats News, January 3rd, Fidelity stated in its "2026 Crypto Market Outlook" that investors considering entering the market for short-term gains may need to exercise caution, but it may not be too late for investors with a long-term view.

Chris Kuiper, Vice President of Digital Assets Research at Fidelity, stated: "Fidelity's Digital Assets division believes that based on game theory principles, more countries may buy Bitcoin in the future. If more countries incorporate Bitcoin into their foreign exchange reserves, other countries may face increased follow-up pressure as they may feel competitive pressures. From a simple supply and demand economic perspective, any additional demand for Bitcoin could potentially drive up prices. However, the key is the scale of incremental demand and whether other investors are selling or holding."

Corporate purchases of crypto assets have increased market demand, helping to boost asset prices. However, investors also need to be aware of related risks. Kuiper cautioned: "If these companies choose or are forced to sell some digital assets, such as when a bear market arrives, this could certainly put downward pressure on the price of Bitcoin or other digital assets."

Kuiper believes that the four-year cycle has not completely disappeared because the fear and greed emotions that drive the cycle have not dissipated. The current price drop may be the starting point of a new bear market or it may just be a pullback in the bull market. Whether predictions about the cycle will come true remains to be seen, perhaps not until later in 2026.

Kuiper stated that although cryptocurrency still faces many uncertainties, one thing has become increasingly clear: the crypto market is entering a new paradigm. "We continue to see a whole new type and level of investors entering the scene, and I believe this trend will continue in 2026. Traditional fund managers and investors have started buying digital assets such as Bitcoin, but I believe the scale of capital they may bring to this space, we are just scratching the surface at the moment."