Fidelity Digital Assets, a leading global asset management company, pointed out in its “2026 Crypto Market Outlook” report that more countries may consider Bitcoin as a reserve asset in the future.
The report says investors looking for short-term gains should be cautious, but opportunities for investors with a long-term perspective have not completely disappeared.
Chris Kuiper, vice president of research at Fidelity Digital Assets, pointed to game theory when evaluating Bitcoin adoption. “From a game theory perspective, it is likely that more countries will buy Bitcoin in the future. If some countries include Bitcoin in their foreign exchange reserves, other countries may feel competitive pressure,” Kuiper said. According to Kuiper, from a simple supply and demand dynamics perspective, additional demand for Bitcoin could cause upward pressure on the price. However, the determining factor will be the scale of this demand and whether existing investors will sell or hold on to their holdings.
The report also notes that increased purchases of cryptocurrencies by businesses supported market demand and pushed up prices. But Kuiper warned that this also comes with risks. “If these companies are forced to sell some of their digital assets during a bear market, for example, this could put significant downward pressure on the price of Bitcoin and other crypto assets,” he said.
Kuiper also addressed the debate surrounding Bitcoin’s four-year cycle, arguing that this pattern has not completely disappeared. Emotions such as fear and greed are fueling the cycle and still impacting the market, Kuiper said. The current price drop could be the beginning of a new bear market, or it could be a healthy correction in a strong bull market. Therefore, a clear conclusion regarding the accuracy of the cycle forecast may only emerge in the second half of 2026.
Kuiper concluded by pointing out that the cryptocurrency market has entered a new paradigm. “A whole new breed of investors of different sizes are entering the market, and I think this trend will continue into 2026,” Kuiper said, adding that while traditional fund managers and institutional investors are showing interest in digital assets like Bitcoin, the scale of capital available to enter this space is only beginning to emerge.
*This is not investment advice.
