Bitcoin Cycle Momentum Turns Positive Amid Wave of Institutional Buying

The Bitcoin Cycle Momentum indicator from CryptoQuant has turned positive for the first time in eight months, signaling a potential reversal of the bear market. Historically, this signal has marked the end of prolonged downturns and confirmed that crypto market cycles still work like clockwork.

Bitcoin's recent price surge from $62,000 to $81,000 pulled the market out of its months-long slumber and triggered a wave of activity. The current recovery is following a classic cycle-transition scenario: coins are flowing en masse from retail investors to long-term holders. Meanwhile, large investors have been aggressively buying the bottom.

Statistics for August confirm this trend. Large wallets holding at least 100 BTC added around 60,000 BTC to their holdings, while small investors sold a combined total of around 47,000 BTC. This suggests that retail players were realizing losses amid fear, while large investors were confident in an imminent rally.

Large holders are so confident that they're using Bitcoin as collateral for loans to ride out the downturn. On specialized platforms, the volume of such loans among large investors increased by 18% as they temporarily shifted part of their risk exposure into other digital assets.