According to the analytical platform CryptoQuant, the recent sharp rise in Bitcoin's price signals the beginning of a new bull market. The company noted that its Bitcoin Bull Score indicator jumped from 30 to 80 in just one week, marking the fastest change in market conditions in the past year. According to CryptoQuant, the last significant obstacle for officially confirming this new bull market is the level around $83,000.
Since Monday, August 17th, Bitcoin has risen approximately 24%, reaching the $80,000 mark. This is the highest level for BTC since May 15th. CryptoQuant attributes this rise to two key macroeconomic factors that were significantly positively evaluated by the market.
The first event was the announcement by the U.S. Treasury Department that from September 9th, the volume of long-term government bond buybacks would increase to at least $4 billion per transaction. The second important event was statements from U.S. President Donald Trump that the U.S. government might consider purchasing Bitcoin.
According to CryptoQuant data, Bitcoin valuation metrics have significantly improved. The platform's Bull Score indicator jumped from 30 to 80 in a week, reaching its highest level since October 6th, 2025. At that time, Bitcoin was trading at around $124,000. Eight of the ten tracked indicators are currently signaling a bullish trend.
Demand-side data also confirms the market shift. CryptoQuant reported that visible spot demand for Bitcoin has shown the fastest monthly growth since late December. Furthermore, demand in both the spot and futures markets has begun to rise simultaneously for the first time since early October 2025.
According to the platform, the simultaneous rise in valuation, demand, and liquidity metrics indicates that Bitcoin has entered the initial phase of a new bull market. However, CryptoQuant asserts that to finally confirm this market shift, Bitcoin needs to close above its 365-day moving average, which is currently around $83,000.
CryptoQuant warned that while medium and long-term prospects have improved, the Bitcoin market may be overheated in the short term.
The unrealized profit margin for traders has increased to 20.5%, reaching the highest level since June 2025. Meanwhile, major market players realized a record profit of $614 million on August 20th.
Simultaneously, the increase in inflows of Bitcoin, Ethereum, and XRP to cryptocurrency exchanges suggests that investors may be transferring their assets to exchanges for selling. Therefore, CryptoQuant stated that it would not be surprising if Bitcoin faces resistance around $83,000 or experiences a correction typical of the beginning of a bull market.
In the platform's view, such a correction would likely be a healthy step to digest the recent 24% gain rather than an end to the uptrend.
In its assessment, CryptoQuant stated that the market situation has now turned bullish, but investors should closely monitor the 365-day moving average at the $83,000 level for confirmation of the new bull market.
*This is not investment advice.
end-content
