Bitcoin demand has turned positive across both spot and perpetual futures markets for the first time since its last bull cycle in October 2025, according to CryptoQuant founder Ki Young Ju on Thursday.
The shift comes as Bitcoin rebounded past $70,000 on Thursday, reaching its highest level since June 2, 2026. The cryptocurrency has gained nearly18% over the last five trading sessions, signaling renewed optimism among investors.
While the improvement remains modest, Ki Young Ju said that sustained demand could signal a broader change in market conditions. A continued recovery in both spot and perpetual futures demand could indicate that the recent rebound is gaining a more durable foundation.
“The scale remains modest, but if this holds for another month, it would be reasonable to conclude that the bear market is over and a new bull cycle has begun,” he wrote in a X (formerly Twitter) post yesterday.
What is fueling bitcoin rally?
Bitcoin stood at $74,644 at 1:09 AM (UTC) on August 21, 2026, up 2.24% over the last few hours and 14% in the last one month.
This rally was partly attributed to a White House crypto legislation push and the US Treasury’s bond buyback program.
“Bitcoin’s move above $71,000 is important because it signals a potential shift from prolonged consolidation towards a broader recovery. Softer Treasury yields and a weaker dollar have improved liquidity conditions, while sustained ETF inflows and progress on regulatory clarity are adding conviction to the move,” said Balaji Srihari, VP – Business, India, CoinSwitch.
US stock markets opened higher on Thursday after the United States Treasury Department announced that it would at least double the level of government debt buybacks, from $2 billion to a minimum of $4 billion per operation, beginning on September 9, 2026.
The US 30-year yield had hit a 19-year high of 5.34% on Tuesday but later declined. The Treasury’s announcement drove it down, last trading at 5.184%, according to a Reuters report.
“This increase in buyback operation sizes reflects Treasury’s desire to provide greater liquidity support in longer-dated nominal sectors where there is consistent strong sponsorship from market participants, as evidenced by the significant volume of high-quality offers Treasury routinely receives in longer-dated buyback operations,” an official press release stated.
Analysts remain cautious
Though the recent rally has fueled optimism among investors and market watchers, analysts remain cautious, warning that Bitcoin could face a “final brutal flush” to $44,000-$48,000 before entering a sustained bull market, according to a Forbes news report.
Some argue that the latest surge is being driven by a liquidity operation rather than true demand, amid concerns over a potential “AI superbubble” adding to the market uncertainty. Although, spot Bitcoin ETFs saw recent inflows, expert skepticism about the rally’s foundation remains high.
