Fidelity: Bitcoin’s Bull-Bear Cycle Volatility to Narrow as the Industry Matures

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Fidelity Digital Assets said Bitcoin’s volatility in the current bull-bear cycle has declined, with drawdowns averaging around 50%, down from 80%–90% in previous cycles. Analyst Zack Wainwright noted weaker gains in each bull run and said downside risks are diminishing through 2026. Investors are also shifting their focus to altcoins to monitor as the market stabilizes.

Huoxing Finance reports that on April 1, Fidelity Digital Assets stated that Bitcoin has declined by approximately 50% during this market cycle, a drop significantly smaller than in previous cycles, and suggested this trend may continue over time. On Tuesday, Fidelity Digital Assets research analyst Zack Wainwright noted that historically, Bitcoin’s pullbacks after reaching new all-time highs have been substantial, typically ranging from 80% to 90%, but this cycle has seen a pullback of about 50%. Examining Bitcoin’s price performance relative to the previous cycle’s peak reveals a pattern of “diminishing returns” between cycles. “Each cycle’s rally has been weaker than the previous one,” he said, “and the downside risk in this cycle, which concludes in 2026, has also decreased.”

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