Fidelity 2026 Outlook: More countries may include Bitcoin in their reserves in the future; whether the four-year cycle will end remains to be seen.

According to ME News, on January 3rd (UTC+8), Fidelity stated in its "2026 Crypto Market Outlook" that investors looking to enter the market for short-term gains should exercise caution, but for those aiming for long-term holding, it may not be too late. Chris Kuiper, Vice President of Digital Asset Research at Fidelity, pointed out: "Fidelity's digital asset division believes that, based on game theory principles, more countries may buy Bitcoin in the future. If more countries include Bitcoin in their foreign exchange reserves, other countries may face increased pressure to follow suit as they may feel competitive pressure. From a simple supply and demand economics perspective, any additional demand for Bitcoin could push up prices. But the key lies in the scale of incremental demand and whether other investors are selling or holding." Corporate purchases of crypto assets increase market demand, helping to boost asset prices. However, investors should also be aware of the associated risks. Kuiper cautioned: "If these companies choose or are forced to sell some of their digital assets, for example, when a bear market arrives, this could certainly put downward pressure on the prices of Bitcoin or other digital assets." Kuiper believes that the four-year cycle has not completely disappeared because the fear and greed that drive the cycle have not dissipated. The current price decline could be the start of a new bear market, or it could simply be a correction within a bull market. Whether the cyclical predictions will come true remains to be seen, and a clear answer may not be available until later in 2026. Kuiper stated that while cryptocurrencies still face many uncertainties, one thing is becoming increasingly clear: the crypto market is entering a new paradigm. "We continue to see entirely new types and levels of investors entering the market, and I think this trend will continue into 2026. Traditional money managers and investors have started buying digital assets like Bitcoin, but I think the scale of funds they may bring to this space is something we've only scratched the surface of so far." (Source: ME)