Fidelity's 2026 Crypto Outlook Flags Cautious Short-Term Entry, Potential for More Nations to Hold Bitcoin Reserves

Fidelity stated in its " 2026 Crypto Market Outlook" released on Jan. 3 that investors seeking short-term gains should exercise caution when entering the market, while those focused on long-term holdings may still find allocation timely, BlockBeats reports. Chris Kuiper, Vice President of Research at Fidelity Digital Assets, said game theory suggests more countries could buy Bitcoin and possibly add it to foreign exchange reserves, which may increase competitive pressure on other nations to follow and lift prices depending on incremental demand scale and whether other investors sell or hold. Kuiper noted rising corporate purchases of digital assets can support prices by adding demand but warned that if these companies choose or are forced to sell portions of their holdings during bear markets, this could exert downward pressure on Bitcoin and other digital asset prices. He added the four-year cycle has not disappeared because fear and greed still drive markets, and he expects growing participation of new investor types and traditional asset managers in buying Bitcoin and other digital assets to continue into 2026, while it may take until late 2026 to know whether cycle-related projections prove accurate.