Fidelity: Bitcoin to Set New All-Time High This Cycle

Fidelity Investments – a $5 trillion asset manager – expects Bitcoin to break its price record before the current market cycle concludes. The firm points to historical bull-market patterns and surging momentum as evidence, with BTC now trading near $104K (just ~5% below its peak)

Fidelity’s Market View

Fidelity Digital Assets, the crypto arm of the Boston-based giant, asserts that Bitcoin’s “Acceleration Phase” is underway – and it could propel prices to a fresh all-time high before the cycle is over. The research team notes that in previous bull runs, the second half of the cycle typically delivered greater price appreciation and volatility than the first. In fact, Bitcoin had already climbed 75% year-to-date by early 2024 after an eight-month consolidation, underscoring the strength of this uptrend. That breakout, boosted by ETF approval news, signaled that the bull market was in full swing and primed for its more explosive phase. Fidelity’s analysts now see a similar pattern emerging, bolstering their confidence that new highs are on the horizon.

Mixed Reactions

Bitcoin’s price is indeed within striking distance of its record high – recently reclaiming the ~$104,000 level, only about 5% shy of the ~$109,115 peak set earlier in the cycle. This proximity has some observers quipping that Fidelity’s prediction feels obvious or “not exactly a bold call,” given how close BTC already is to an ATH. Others point out that macroeconomic tailwinds could be helping anyway – for example, the U.S. government’s rising debt ceiling and related liquidity injections are seen as bullish fuel for asset prices. Still, Fidelity’s public optimism adds a big-name endorsement to the bullish sentiment. Even as a few skeptics roll their eyes, many investors are taking the firm’s cycle analysis as another sign that Bitcoin’s runway for growth isn’t finished yet.

What this means for YOU

• Crypto holders: If you own Bitcoin, be prepared – a new price record could boost your portfolio, but expect higher volatility as the cycle enters its late stages.

• Investors & traders: Fidelity’s call suggests there may still be upside potential. However, even with a large institution bullish, keep risk in check since no prediction is guaranteed.

• Wider crypto market: A Bitcoin breakout to new highs can lift sentiment across the crypto space, possibly benefiting other coins you hold as excitement spills over.

• Big picture watch: Macro moves (like government spending sprees or debt ceiling hikes) can inflate markets. Staying aware of these broader trends will help you understand and navigate any dramatic moves in your crypto investments.