Bitcoin and Ethereum have staged a powerful comeback, with BTC gaining more than 25% and briefly reaching around $79,500. Ethereum and Hyperliquid also posted gains above 25%, raising a major question for the crypto market: Has the bear market finally ended?

Several signals suggest this rally could be more than a short-term bounce. Analysts point to Bitcoin’s unusually strong volatility-adjusted move, improving institutional demand, rising ETF inflows and growing confidence around US crypto regulation.

Another important factor is liquidity. Expectations around increased US Treasury buybacks have pushed investors to consider whether easier financial conditions could return. If liquidity increases, assets such as Bitcoin and gold could benefit as investors look for protection against dollar debasement.

Institutional activity is also encouraging. BlackRock’s IBIT recorded extremely strong trading volume, while multiple institutional investors increased their Bitcoin ETF exposure. Companies such as Strategy and other digital-asset treasury firms have also continued to add Bitcoin to their balance sheets.

Technical indicators are improving as well. Bitcoin has moved back above its 200-day moving average, which analysts consider an important long-term bullish signal. A sustained break above the $83K–$84K area could provide stronger confirmation that a major trend reversal is underway.

However, the market still faces risks. More than $4 billion in crypto positions were liquidated during the recent move, showing just how aggressive and leveraged the market has become. Bitcoin also needs to prove that the $70,000 area can hold as a strong support level.

The upcoming Jackson Hole symposium and developments surrounding the US CLARITY Act could become important catalysts for crypto markets.

Bottom line: The recent rally has several characteristics of a genuine market regime shift rather than a simple countertrend bounce. But confirmation will depend on sustained spot and ETF demand, Bitcoin holding key support levels, and continued institutional participation.

The next few weeks could be crucial for determining whether Bitcoin has truly entered the next phase of its bull market—or whether this rally is simply another temporary recovery.

This is market analysis, not financial advice. Always do your own research before making investment decisions.