CryptoQuant, a data firm, reported that Bitcoin's price has broken above its 365-day moving average, a technical signal that has historically marked the beginning of bull markets in past cycles. This is the first time Bitcoin's price has returned above this average since March 2023. The report emphasized that this moving average is a "cycle-defining" indicator, and its historical record gives this breakout real market weight, rather than it being a routine rebound. Bitcoin's price surged in August, achieving its best performance in years, after the U.S. Treasury announced it would at least double the size of its liquidity support repurchase operations. Last week, Bitcoin's price rose again, reaching a high of nearly $87,330 on Monday, and was recently trading at $86,598. The report also stated that long-term holders appear to have stopped selling, paving the way for new investors to enter the market. Bitcoin hit an all-time high of $126,080 last October but subsequently fell due to the largest liquidation event in crypto history, with over $19 billion in bets being closed out. In the first half of this year, Bitcoin continued to decline as the Federal Reserve made it clear it was in no hurry to cut interest rates and investors shifted towards AI-related stocks. However, "debasement trades" – hedging against currency devaluation – have heated up again, with Bitcoin and precious metals like gold performing well when the U.S. dollar weakens. Last week, the Federal Reserve raised interest rates to control high U.S. inflation, but investors largely shrugged this off and continued to buy Bitcoin. Currently, the market seems to favor assets that can hedge against government debt and deficits. In August, the total U.S. debt surpassed $40 trillion for the first time.