CryptoQuant Bull Score Indicates Bitcoin Enters New Bull Market Phase
Bitcoin (BTC) appears to be transitioning into the early stages of a new bull market, according to analytics firm CryptoQuant. The firm's Bull Score for Bitcoin surged from 30 to 80 within just a week, marking its most bullish reading since October 2025, when Bitcoin was valued at $124,000. Since August 17, Bitcoin has climbed approximately 24% to reach a high of $80,000.
Two macroeconomic developments have been identified as catalysts for this movement: 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. Currently, eight out of ten metrics tracked by CryptoQuant are showing bullish signals, with spot demand expanding at its fastest monthly pace since late December.
CryptoQuant describes this situation as a genuine regime shift, marking the initial phase of a new bull market, although they emphasize the need for official confirmation. This confirmation would come with a close above Bitcoin's 365-day moving average, which is currently around $83,000.
While the outlook remains bullish, CryptoQuant cautions that the market may experience near-term corrections. They note that trader unrealized profit margins have surged to 20.5%, the highest level since June 2025, and whales realized a record $614 million on August 20. Additionally, inflows for Bitcoin, Ethereum, and XRP have increased, suggesting potential near-term selling pressure.
Updated 12:05 UTC
New Insights on Crypto Security Losses
The crypto industry has suffered $3.63 billion in losses due to security breaches from January 2025 through early August 2026, according to CoinGecko. This period has seen a significant increase in the frequency of attacks.
In 2025 alone, $2.55 billion was lost across 97 incidents, with an average loss of approximately $26.3 million per incident. However, this average is heavily influenced by the Bybit exchange breach, which accounted for about $1.4 to $1.5 billion in losses. Excluding Bybit, the remaining incidents totaled around $1.1 billion.
For 2026, the first seven months have recorded approximately $1.2 billion lost across 164 incidents, indicating a nearly 70% increase in breaches compared to all of 2025. The average loss per incident in 2026 is around $7.3 million.
April 2026 was particularly devastating, with over $644 million in losses linked to North Korean threat actors. This single month nearly matched the total losses from all non-Bybit incidents in 2025.
The report also highlights the KelpDAO exploit, which had far-reaching effects on the DeFi sector, causing Aave's total value locked to plummet from approximately $25.9 billion to $14.4 billion, a decline of $11.5 billion.
Overall, the data reveals a troubling trend: while the number of incidents is rising, the industry struggles to keep pace with securing its infrastructure against evolving threats.
FAQ
What does the CryptoQuant Bull Score indicate about Bitcoin's market phase?
The CryptoQuant Bull Score indicates that Bitcoin is transitioning into the early stages of a new bull market, having surged from 30 to 80, marking its most bullish reading since October 2025.
What are the recent price movements of Bitcoin?
Since August 17, Bitcoin has climbed approximately 24%, reaching a high of $80,000.
What macroeconomic factors are contributing to Bitcoin's rise?
Two key macroeconomic developments contributing to Bitcoin's rise are the US Treasury's plan to double long-term government bond buybacks and indications that the US government may consider purchasing Bitcoin.
What is required for official confirmation of the new bull market?
Official confirmation of the new bull market would come with a close above Bitcoin's 365-day moving average, which is currently around $83,000.
What caution does CryptoQuant provide regarding the market outlook?
CryptoQuant cautions that while the outlook remains bullish, the market may experience near-term corrections, as trader unrealized profit margins have surged and there is potential near-term selling pressure.
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