‘Bitcoin winter is over,’ says Fidelity as its predicts a new 4-year bull market

Bitcoin rallied by 6% on Friday and reclaimed $80K as crude oil prices slipped below $100 per barrel. This eased fears of oil-driven inflation, sparking a strong rebound across U.S equity and crypto markets. For Fidelity, however, BTC’s resilience also meant that it might be ready for its next bull market cycle run. 

Why Fidelity thinks Bitcoin winter is over

According to Jurrien Timmer, Fidelity’s Head of Global Macro, BTC has held above $60K for about a year.

For him, two signals have been flagged – The 1-year Bitcoin winter and BTC/gold correlation turning positive. Timmer said that these signals confirm a durable bottom and potential early innings into the next bull cycle run. 

That’s how long a typical Bitcoin winter lasts (1 year), so I’m sensing that a new 4-year cycle bull market is underway.

He added that the market is now in a ‘new secular regime of higher cost of capital.’ He is expecting the government to respond with ‘financial repression.’ In other words, the government will do anything possible to contain the rising bond yields, including printing money. 

Put differently, the inflation from U.S government intervention could trigger demand for scarce assets like Bitcoin and gold.