Fidelity Digital Assets just dropped a 26-page report on Bitcoin's future, and the verdict is in: the king crypto isn't breaking, it's just growing up.
The finance giant pushed back hard against the narrative that Ordinals and inscriptions are 'breaking' Bitcoin. Fidelity argues that on-chain data shows block space demand stayed low throughout 2025, even during waves of so-called 'spam.' If demand does spike, higher fees are actually a healthy sign, boosting miner economics. The report also addressed internal governance drama, warning that attempts to censor non-financial transactions would undermine Bitcoin's core properties.
On the technical front, Fidelity is keeping an eye on quantum threats. Roughly 6.6M BTC could theoretically be at risk due to exposed public keys, but developers are already exploring solutions like BIP-360 with a 'prepared, not scared' mindset.
The report boils down to a battle between liquidity and macro risk for 2026.
The bull case is simple: global liquidity is starting to turn. With U.S. debt above $38 trillion and debt-to-GDP near 125%, easier money is the path of least resistance. Fidelity frames Bitcoin as a 'liquidity sponge'—when excess capital enters the system, scarce assets tend to absorb it. With $7.5T sitting in money market funds that could rotate into risk assets, plus spot ETFs holding over $123B in AUM, the setup for expansion is real.
The bear case is equally important. Inflation remains sticky, the dollar is strong, and policy is still restrictive. Geopolitical tensions and fiscal stress continue to weigh on sentiment. If markets tip risk-off, Bitcoin’s deep liquidity cuts both ways: it can absorb shocks, but it can also sell off hard alongside tech and other high-beta assets.
Overall, Fidelity’s takeaway is that Bitcoin is maturing into a macro asset, increasingly shaped by liquidity cycles, institutional flows, and global policy decisions. The long-term foundation looks stronger than ever, but the next leg higher won’t come without volatility.
