Bitcoin Surges on Spot Demand as CryptoQuant Bull Score Hits 80, Signaling Strong Bullish Trend
Bitcoin has surged past $103,000, driven by a marked increase in spot demand and renewed optimism in the crypto market. CryptoQuant’s Bull Score Index, which aggregates ten key on-chain metrics such as liquidity, network activity, and market inflows, soared from 20 to 80—one of its highest readings in over a year. Historically, Bull Scores above 60 have been tied to sustained market rallies. The recent increase is linked to significant ETF inflows and rising institutional interest, reversing prior bearish sentiment from April when the index stood at just 10. On-chain data also shows strong retail participation, with over 344,000 new wallets created in a week, indicating potential FOMO. CryptoQuant’s CEO notes that traditional sell pressure from large holders is being offset by institutional demand and ETF investments. The integration of crypto with traditional finance (TradFi), including initiatives like a proposed U.S. Bitcoin Strategic Reserve, is challenging past cycle patterns. In the last 30 days, Bitcoin rallied 33.7%, and is up nearly 70% year-on-year, though still 5% below its all-time high. While analysts agree that the elevated Bull Score and robust spot demand validate positive momentum, they advise caution due to the potential for fast shifts driven by macroeconomic or regulatory factors. Traders should use the Bull Score as a confirmation tool, but maintain strong risk management. Overall, current conditions suggest a bullish outlook for Bitcoin, supported by strong institutional and retail inflows and historical precedents of similar sentiment surges.
Bullish
The surge in CryptoQuant’s Bull Score Index to 80, driven by a significant increase in spot demand, institutional flows, and ETF inflows, signals a powerful shift toward bullish market conditions for Bitcoin. Historical data indicates that such high sentiment scores often precede sustained price rallies. Additional bullish signals include strong retail wallet creation and the absorption of traditional sell pressure by new institutional demand. While short-term volatility remains possible due to macro or regulatory factors, the current combination of on-chain metrics, investor sentiment, and market participation points to a bullish outlook for both short-term momentum and potential long-term gains.