Bitcoin's Bull Run Resumes, Data Confirms

Bitcoin’s strong weekend performance has led many to believe the bull market is resuming, and the data supports that view.

A recent report from data firm CryptoQuant indicates that Bitcoin has moved above its 365-day moving average, a signal that the bear market has ended.

Bitcoin surged in August, registering its best rally in years, after the U.S. Treasury announced it would at least double the size of its liquidity-support buyback operations. The rally later cooled, but prices rebounded last week, recently trading at $86,598 after hitting a high of nearly $87,330 on Monday.

“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 report stated.

The report further called the moving average a “cycle-defining” line that has historically confirmed the start of bull runs.

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

According to the report, long-term holders seem to have completed their selling, paving the way for new investor entry.

Bitcoin reached an all-time high of $126,080 in October last year, but later that month it started declining after the largest liquidation event in crypto history wiped out over $19 billion in positions.

During the first half of this year, Bitcoin continued its downturn after the Federal Reserve signaled no urgency to cut rates, while investors shifted capital toward AI-related stocks.

However, the “debasement trade” is once again popular — a strategy where investors buy assets to hedge against currency devaluation. Bitcoin and gold have historically risen when the dollar weakens.

The Federal Reserve raised interest rates last week to curb high inflation in the U.S. Investors largely ignored the rate hike and continued to accumulate Bitcoin.

Currently, investors appear more inclined to purchase assets that provide protection from government debt and deficits. U.S. debt surpassed $40 trillion for the first time in August.