Fidelity Warns Bitcoin Bear Market Might Not Be Over Yet

Bitcoin has put on an impressive show lately, climbing close to $81,639 and jumping nearly 30 percent over the past month. The strong price action follows a policy shift from the United States Treasury Department regarding government debt repurchases. While many traders take this recent momentum as a clear sign that the bear market is finished, major financial institutions urge caution.

A fresh report from Fidelity Digital Assets points out that historical four year market cycles are not reliable for timing bottoms. Chris Kuiper, Vice President of Research at Fidelity, noted that while the absolute low might have happened in July, the asset could still slide to a new low in November or later. Bitcoin previously traded below $65,000 with low volatility during June and July before the recent rally took off.

Traders are now watching upcoming political and regulatory catalysts for clues on the next major market direction. Lawmakers are set to vote this month on the crypto Clarity Act, a market structure bill supported by President Donald Trump. Clear rules from Washington could shape market sentiment for the rest of the year as the digital asset community waits to see if the current price strength will hold.