Even though bitcoin is climbing, the bear market might not have concluded. At least, not yet.
A fresh analysis published by investment firm Fidelity stated that while bitcoin was acting similarly to past cycles, a definitive market bottom could still occur in November.
Bitcoin began its upward movement in mid-August following the announcement by the U.S. Treasury Department stating it would more than double its government debt buybacks. The cryptocurrency’s valuation lately hovered near $81,639, marking an increase of almost 30% across a 30-day span.
Consequently, certain observers contend that bitcoin has escaped its bear market conditions. Last October, the coin achieved an all-time peak of $126,080.
Chris Kuiper, Vice President of Research at Fidelity Digital Assets, penned that “considering recent price action for bitcoin, the cycle low might have already happened back in July.”
He further noted that “it could additionally retreat to establish another fresh low by November or further out,” explaining that historical bitcoin cycles have never strictly lasted four years, rendering them “ineffective for timing the market accurately.”
Throughout the majority of June and July, the volatility of bitcoin remained exceptionally subdued, with the digital currency changing hands under $65,000.
Nevertheless, that shift occurred in August subsequent to the Treasury Department’s declaration, which has since revived the conversation surrounding the debasement trade.
To gauge the upcoming trajectory of bitcoin, Kuiper suggested that market participants monitor developments concerning the cryptocurrency Clarity Act. Supporters claim the legislation could deliver “enhanced regulatory clarity and foster sustained innovation within the domestic digital asset framework,” he noted.
Back in August, President Donald Trump encouraged legislators to finalize the delayed crypto market structure legislation, providing momentum for bitcoin’s rally. Following a White House gathering with prominent cryptocurrency leaders, the president described the proposal as “exceptionally powerful.”
The broader digital asset sector has persistently advocated for transparent guidelines regarding how regulatory bodies ought to manage bitcoin, stablecoins, and alternative cryptocurrencies.
Legislators are scheduled to vote on the legislation over the course of this month.
Originally published at https://bitcoinmagazine.com/news/bitcoin-bear-market-not-over-says-fidelity.
