Fidelity, a leading global asset management firm, recently released its "2026 Crypto Market Outlook" report , pointing out that cryptocurrencies began to gain mainstream acceptance in 2025, especially with the US government officially designating Bitcoin as a strategic reserve asset, marking a shift from a high-volatility speculative tool to a legitimate store of value. The report was authored by Chris Kuiper, Vice President of Digital Asset Research at Fidelity, who analyzed several key trends heading into 2026 and offered advice to investors.
Bitcoin is recognized by the US government
The report begins by emphasizing that in March 2025, US President Trump signed an executive order establishing a "strategic Bitcoin reserve," classifying government-held Bitcoin and other cryptocurrencies as national reserve assets. While the impact of this move remains to be seen, it clearly demonstrates that cryptocurrencies are no longer merely a speculative game for a few investors, but rather assets backed by the government. Kuiper states that this makes Bitcoin more like a store of value against inflation.
Fidelity believes this move could prompt more countries to follow suit, allowing cryptocurrencies to gradually move into the mainstream financial market.
More countries may establish crypto reserves
A Fidelity report points out that while most countries globally hold cryptocurrencies, few have actually incorporated them into their national strategic reserves. However, a breakthrough is expected in 2025, with Kyrgyzstan establishing a crypto reserve and the Brazilian Congress discussing converting up to 5% of its foreign exchange reserves into Bitcoin.
Chris Kuiper, Vice President of Research at Fidelity Digital Assets, said that if more countries include Bitcoin in their foreign exchange reserves, it could lead to other countries following suit, increasing market demand and thus affecting Bitcoin's price trend.
Corporate buying of cryptocurrencies is becoming a trend.
Besides governments, businesses are also emerging as a new force in the crypto market. Fidelity points out that by 2025, more than 100 publicly traded companies will hold cryptocurrencies.
Kuiper stated that besides capital operation considerations, companies purchasing cryptocurrencies may also provide investors with an indirect opportunity to enter the market. However, he also cautioned that if companies are forced to sell digital assets, it could still put pressure on prices.
Bitcoin's Four-Year Cycle and Market Volatility
A Fidelity report points out that Bitcoin has exhibited a roughly four-year cycle since 2013, with significant price fluctuations between bull market highs and bear market lows. Other cryptocurrencies also show similar price patterns in line with Bitcoin's price volatility.
We are currently at the end of the four-year cycle of the last bull market (November 2021), and market prices have recently fallen. Kuiper believes that the pullback may be a short-term correction or it may mark the beginning of a new bear market, but in the long run, a bull market supercycle is still possible.
Investing in Bitcoin still has long-term value
For investors who haven't yet entered the market, Fidelity suggests considering their investment horizon. While short-term or medium-term (4-5 years) volatility is possible, Bitcoin remains attractive if the goal is long-term value storage. Kuiper emphasizes that as long as Bitcoin's fixed supply cap mechanism remains unchanged, every purchase could potentially be an inflation hedge.
