Bitcoin’s Bull Market Returns, Supported by Data

Bitcoin’s weekend performance suggests to observers that the bull market has returned, and underlying data supports this conclusion.

Fresh data from analytics firm CryptoQuant reveals that the top cryptocurrency has broken above its 365-day moving average, indicating that the asset has exited its bear market.

Bitcoin experienced a major price surge in August, marking its strongest performance in years. This momentum was triggered by the U.S. Treasury’s announcement that it would at least double its liquidity-support buyback operations. After a brief cool-down period, prices rallied again last week, recently changing hands at $86,598 following a peak near $87,330 on Monday.

The report notes, “This crossover is the definitive technical signal that has marked the start of Bitcoin’s bull markets in past cycles, and it is the first time price has reclaimed the 365-day moving average since March 2023.”

The analysis adds that this moving average serves as a “cycle-defining” threshold that historically confirmed the beginning of past bull runs.

The report further states, “Its track record across cycles is why this reclaim carries real weight rather than being a routine bounce.”

Furthermore, long-term holders appear to have completed their sell-offs, clearing a path for new participants to enter the market.

Bitcoin reached an all-time high of $126,080 in October of last year before declining later that month due to the largest liquidation event in cryptocurrency history, which wiped out over $19 billion in leveraged positions.

The downward trend persisted through the first half of this year as the Federal Reserve signaled no immediate plans to cut interest rates, while investors redirected capital toward artificial intelligence stocks in search of yields.

However, the debasement trade — where buyers seek out assets to hedge against currency devaluation — has regained momentum. Both Bitcoin and precious metals like gold have thrived during periods of dollar weakness.

Although the Federal Reserve raised interest rates last week to combat high inflation in the U.S., investors brushed off the central bank’s actions and continued accumulating the asset.

Interest has grown around assets capable of hedging against government debt and deficits, particularly after total U.S. debt exceeded $40 trillion for the first time in August.