Bitcoin's Price Surge: Is it a True Bull Market?

Bitcoin's recent price surge has left investors wondering if it's a true bull market. According to a report from Bitfinex, Bitcoin is currently in an early transitional phase, and the bull market has yet to be fully confirmed.

The report highlights that on September 21, Bitcoin rose to $87,392, its highest since late January, before correcting to $83,000. Several indicators were analyzed as market benchmarks, including the supply in profit, which increased from 63% a week earlier to 78.2% on September 22.

The report notes that for the rally to be confirmed, this indicator must hold at 75%, which separated bear and bull markets in past cycles. Another key metric, MVRV, increased from a July low of 1.09 to 1.62 but remains below its long-term average of about 1.8.

The current value is comparable to the early stages of recovery in 2019 and 2023. The report also points out that recent demand has been fueled by spot Bitcoin ETFs and corporate treasuries, with digital gold-based funds attracting $999 million on September 21 and another $714.7 million on September 22.

The total inflow for the week amounted to $2.31 billion. Corporate purchases also accelerated, with Strategy acquiring 950 BTC and Strive buying 1,355 BTC before Bitcoin rose above $80,000.