Bitcoin is trading below $60,000 as of late June 2026, roughly 53% off its October 2025 all-time high above $126,200. A short-lived rally from March to May gave bulls a brief reason for optimism, but prices have since retreated.
According to a new report from Fidelity, the current downturn has the hallmarks of a crypto winter — and history points to five factors that could bring it to an end.
Fidelity notes that bitcoin has formed bull market tops and bottoms at roughly four-year intervals since 2011. With the last bear market bottom arriving in November 2022, the pattern suggests a potential floor around November 2026 — if the cycle holds. The debate over whether bitcoin’s 4-year cycle is intact remains active, and some analysts argue the bear market is nearly finished while others are less certain.
Bitcoin’s four-year cycle
The cycle’s engine, Fidelity explains, is bitcoin’s halving mechanism — a built-in rule that cuts mining rewards in half every four years, reducing new supply entering circulation. The most recent halving in April 2024 dropped block rewards to 3.125 BTC.
If demand holds steady or grows against a shrinking supply, prices can rise. The firm cautions, though, that the cycles have varied in length and should be used for big-picture analysis rather than precise trade timing.
Regulation
Clear rules have preceded previous bull markets, according to Fidelity. The SEC’s approval of spot bitcoin ETPs in January 2024 was a defining moment, helping push bitcoin to new highs. Now, the firm flags the CLARITY Act as the next major legislative development to watch.
The bill, which would divide digital asset oversight between the SEC and CFTC and give the industry a clear legal framework, passed the House in 2025 and has since advanced through the Senate Banking Committee. A hearing is scheduled for July 17, with the crypto industry watching closely.
If it becomes law, Fidelity argues it could unlock domestic activity that has been held back by legal uncertainty.
Federal Reserve policy
Fidelity points to a consistent, if correlational, relationship between interest rate cuts and crypto price gains. Looser monetary conditions make borrowing cheaper and investors more comfortable taking on risk — and crypto has historically benefitted. The inverse has also been true when rates rise.
With inflation still a concern in mid-2026, the Fed’s path remains unclear. The firm notes that any price appreciation could come well before an official rate cut announcement, as markets tend to move in anticipation.
A breakout use case
NFTs and memecoins turbocharged the 2019–2021 bull run, according to Fidelity — a wave of investor interest few saw coming. The firm identifies three trends drawing the most attention in 2026: real-world asset tokenization, AI-related crypto infrastructure, and stablecoins, which have seen rapid adoption following the passage of the GENIUS Act in 2025. But Fidelity also leaves the door open to something no one is watching yet — historically, the biggest catalysts have been surprises.
Institutional adoption
Fidelity acknowledges this is no longer a fresh narrative. When public companies first disclosed crypto holdings in 2020, it sparked a new story that helped run prices to then-record highs. The establishment of the U.S. Strategic Bitcoin Reserve in March 2025 had a similar effect, helping push bitcoin above $126,000. But sustained institutional adoption throughout 2026 has not translated into a new bull market.
Still, Fidelity argues an unforeseen move could change the calculus. A Magnificent Seven company announcing a major bitcoin position — something not seen since Tesla’s 2021 purchase, most of which it later sold — could create a fresh narrative. So could a global crisis driving institutions toward bitcoin as a hedge, something that has not materialized during the ongoing conflict in Iran.