The recent performance of Bitcoin has led many observers to speculate that a bull market is re-emerging; however, supporting data reinforces this perception.

A report from the data analysis firm CryptoQuant indicates that Bitcoin, the leading cryptocurrency, has surpassed its 365-day moving average, a significant indicator suggesting the conclusion of its bear market phase.

In August, Bitcoin experienced a notable price surge, achieving its most impressive rise in years, attributed to an announcement from the U.S. Treasury regarding plans to more than double liquidity-support buyback operations. Although the momentum cooled briefly, prices surged again last week, with recent trades occurring around $86,598 after peaking nearly at $87,330 on Monday.

According to the report, “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.”

Furthermore, the report emphasized that the moving average serves as a “cycle-defining” benchmark that has historically confirmed the commencement of bull markets.

The analysis pointed out that the consistency of this indicator across various market cycles lends significant weight to this reclaim, distinguishing it from standard market fluctuations.

Additionally, the report noted that long-term holders appear to have ceased selling, thereby paving the way for new market entrants.

Bitcoin reached a peak of $126,080 in October of the previous year; however, it subsequently experienced a decline influenced by the largest liquidation event in cryptocurrency history, resulting in over $19 billion in positions being closed.

In the first half of this year, the cryptocurrency continued its downward trajectory following the Federal Reserve’s indication of no immediate plans to lower interest rates. Investors increasingly redirected funds toward artificial intelligence-related equities in pursuit of returns.

Nonetheless, the so-called debasement trade—where investors allocate capital to safeguard against currency devaluation—has regained momentum. Bitcoin and precious metals like gold have historically performed well during periods of dollar depreciation.

Last week, the Federal Reserve raised interest rates to combat soaring inflation in the U.S. However, market participants appeared unfazed by the central bank’s actions, opting instead to accumulate the asset.

Currently, there seems to be an increased interest in acquiring assets that offer protection against governmental debt and deficits, especially in light of U.S. total debt surpassing $40 trillion for the first time in August.

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