Bitcoin bulls weigh ‘supercycle’ thesis as Fidelity flags structural shift

Fidelity’s Parth Gargava says Bitcoin could be shifting into a supercycle, with ETF demand, friendlier U.S. policy and market maturation muting the classic boom‑bust halving pattern.

Bitcoin may be transitioning away from its traditional four-year cycle into an extended “supercycle” characterized by prolonged price highs and less severe drawdowns, according to a Fidelity Labs executive.

Fidelity Labs gives their crypto outlook

Parth Gargava, managing partner at Fidelity Labs, made the remarks in Fidelity’s Jan. 9 crypto outlook video for 2026, outlining a potential shift in the cryptocurrency’s market behavior driven by structural demand changes.

Bitcoin has historically followed a four-year cycle pattern closely tied to its halving events, with price peaks occurring approximately 18 months after each halving, Gargava stated. The 2016 halving preceded a peak in December 2017, while the 2020 halving was followed by another peak in 2021, according to the presentation.

The most recent halving occurred in April 2024, prompting debate among market participants about whether Bitcoin has already reached its cyclical peak or whether market dynamics have fundamentally changed.

“On the other side, you’re also seeing a lot of arguments around how we might have entered into a supercycle as opposed to what we have seen in the past four years,” Gargava said. “And what a super cycle really means is you might have more prolonged highs, longer highs, and shallower dips.”

Gargava cited research from Fidelity Digital Assets outlining the supercycle mechanism, drawing an analogy to commodity markets in the 2000s, where sustained multi-year demand altered typical market behavior.

Three factors could support such a regime shift, according to the executive. First, steady institutional investment through exchange-traded funds represents persistent demand rather than episodic speculative activity, potentially maintaining capital flows during periods of weakening sentiment.

Second, pro-cryptocurrency policies in the United States could reduce regulatory uncertainty and encourage broader participation from institutional investors and intermediaries, Gargava stated.

Third, the cryptocurrency market is maturing and showing changing correlations with traditional assets. “We’re also seeing how the crypto market as a whole is maturing and deviating from the S&P 500 and precious metals,” Gargava said, suggesting Bitcoin’s trading behavior may be becoming less dependent on traditional risk-asset movements.

Gargava did not definitively state that the four-year cycle has ended, instead framing the question as one market participants will answer in 2026 based on whether Bitcoin follows its historical boom-and-bust pattern or demonstrates a longer, steadier expansion supported by structural market changes.