Analytics firm CryptoQuant reports that Bitcoin (BTC) is shifting into the early stages of a new bull market regime following a strong market rally.
CryptoQuant’s Bull Score for Bitcoin surged from 30 to 80 within the span of a week. This marks the most bullish reading for the metric since October 2025, when Bitcoin traded at $124,000.
The recent upward movement follows a roughly 24% climb since August 17, which brought Bitcoin to a high of $80,000. According to the analytics firm, the rally was fueled by two macroeconomic developments: the US Treasury’s plan to double long-term government bond buybacks to at least $4 billion per operation, and indications that the US government may consider purchasing Bitcoin.
Data shows that eight out of ten metrics are currently reading bullish, with apparent spot demand expanding at its fastest monthly pace since late December.
Regime Shift and Official Confirmation
CryptoQuant described the shift as a genuine regime shift and the initial phase of a new bull market, though it noted that the transition requires official confirmation. According to the firm, valuation, demand, and liquidity have all switched into bull mode, with official confirmation depending on a close above Bitcoin’s 365-day moving average, which currently stands at approximately $83,000.
Near-Term Warnings
Despite the bullish outlook, the firm issued warnings regarding potential near-term corrections as the market appears overheated.
- Trader unrealized profit margins have spiked to 20.5%, reaching their highest level since June 2025.
- Whales realized a record $614 million on August 20.
- Exchange inflows for Bitcoin, Ethereum (ETH), and XRP have increased, suggesting possible near-term selling pressure.
