CryptoQuant Analysts Say Bitcoin Has Entered a New Bull Market Phase

Bitcoin has exited its bear market, though analysts caution that a short-term pullback remains possible.

Researchers at CryptoQuant believe the cryptocurrency is displaying patterns consistent with previous cycle recoveries. The firm’s founder, Ki Young Ju, announced on X on Tuesday that the asset had moved into the “early bull phase.”

Ju highlighted price action that mirrors bitcoin’s behavior ahead of its last bull run, suggesting history may be repeating itself.

According to CryptoQuant’s data, bitcoin is once again flowing into derivatives exchanges, a trend that signals traders have shifted into a “risk-on” posture. Historically, this pattern has marked the beginning of new bull cycles.

Fellow CryptoQuant analyst Theophiluspep echoed that outlook, noting that spot demand, ETF inflows, and overall market momentum have all turned decisively bullish. However, he pointed to elevated profit-taking, rising exchange inflows, and overbought technical conditions as signs that a near-term cooldown could be on the horizon.

“This looks increasingly like a genuine regime shift into the early phase of a new bull market, driven more by improving spot demand and institutional ETF buying than by excessive leverage,” Theophiluspep wrote.

Bitcoin began its rally last week, climbing 22% over a seven-day stretch and trading recently at $78,716. The asset briefly touched $81,160 on Monday before pulling back slightly.

The surge follows a sluggish June and July, during which bitcoin mostly hovered below the $65,000 mark.

U.S. investors also reversed course last week, pouring money into spot bitcoin ETFs in what became the funds’ strongest week since October — the same month bitcoin set its all-time high of $126,080.

Data from Farside Investors indicates that ETFs operated by firms including BlackRock, Fidelity, Grayscale, and Morgan Stanley attracted a combined $1.9 billion in fresh capital.

The shift in market sentiment followed the Treasury Department’s announcement last week that it would at least double the size of its long-dated bond buybacks.

Since that announcement, Treasury yields have declined, while both bitcoin and gold have rallied sharply. The U.S. dollar slipped to a three-month low and was on pace for its worst weekly performance of August. Bitcoin, by contrast, recorded its strongest week since 2023.

Constructive regulatory developments from the White House also contributed to the bullish mood. President Donald Trump met with crypto executives earlier in the week and called on lawmakers to advance the Clarity Act.

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