Key highlights:

  • Bitcoin’s latest rally sees it post its biggest weekly gain since 2023
  • Prices surged from $60K to almost $80K, representing a 25% surge in seven days
  • The rally has sparked chatter that the bear market is over as Bitcoin tests the $80K psychological level

Bitcoin, the largest cryptocurrency by market capitalization, has recorded its largest weekly price gain in nearly three years after months of heavy sideways trading. The price spurt has since triggered speculation of the end of the bear market, with altcoins following BTC’s lead to record impressive weekly gains.

Bitcoin records strongest weekly performance since 2023

According to CoinCodex data, BTC gained 25.10% over the last week, making it the largest upward price movement for the premier cryptocurrency since 2023. The surge sent Bitcoin's price on a tear from the low-$60,000 range to nearly $80,000 in under seven days.

 

The rally also saw the asset end its fifth-longest Extreme Greed drought on the Bitcoin Fear & Greed Index after 317 days. At press time, Bitcoin is $79,000 after recording a respectable 2% increase over the last 24 hours.

Zooming out, the rally accelerated after US Treasury Secretary Scott Bessent announced plans to almost double purchases of longer-dated US government bonds. The move initially lowered Treasury yields and raised expectations for improved market liquidity, encouraging investors to turn their gaze to risk assets. 

Bitcoin also benefited from a weaker US dollar and growing concerns about the country’s fiscal position. Amid the concerns, investors turned to Bitcoin and gold as alternative assets, sending both assets on strong price runs.

Meanwhile, the week-long price surge triggered widespread liquidations of bearish cryptocurrency positions, forcing traders who had bet against Bitcoin to buy the asset back as prices climbed. According to market data, over $4 billion in bearish crypto positions were liquidated during the rally.

Institutional demand provided another source of support, with spot Bitcoin ETFs recording renewed inflows during the week. Bitcoin’s rebound also lifted other major cryptocurrencies, with Ethereum (ETH), Solana (SOL), and XRP logging double-digit gains in the same window.

Is the bear market over?

The recent Bitcoin rally has fuelled speculation of even higher prices for the leading cryptocurrency. Strive CEO Matt Cole, in an X post, hinted at the end of the bear market while forecasting a strong bullish outlook for Bitcoin in the coming months.

Before the latest rally, several analysts pointed to telltale signals of the end of the bear market. In early August, CryptoQuant analysts pointed to heavy whale accumulation of digital assets as a potential signal of the end of the crypto winter, citing historical data to support the thesis.

Meanwhile, Bitwise CIO Matt Hougan argued that Bitcoin's price holding steady amid a raft of black swan incidents indicated a clear sign of changing market sentiment. Bitcoin weathered Strategy selling its BTC holdings and held steady during the jarring Coldcard hack in early August.

However, US-based economist Peter Schiff has warned investors that the recent rally is only a fakeout, predicting a price slump in the coming weeks. For now, investors await US inflation data and Federal Reserve Chair Kevin Warsh’s speech later in the week for indicators of a bull market.