CryptoQuant: Bitcoin Has Entered a Bull Market Cooling Period, Fed Rate Cut at September Meeting May Serve as New Catalyst

According to a report by Jinse Finance, blockchain data analytics firm CryptoQuant has indicated that after Bitcoin reached a historic high of $123,000 last month, there are now signs of short-term consolidation or a mild downward risk. In a report released on Thursday, the company stated: "Bitcoin has entered a bull market cooling phase, with the bullish index dropping from 80 to 60. While the overall environment remains positive, upward momentum is weakening." CryptoQuant's bullish index assesses the strength of the Bitcoin market using multiple on-chain indicators; a value close to 100 represents strong buying and bullish sentiment, while a value near zero signals heavy selling pressure. CryptoQuant's analysis notes that the current index value of 60 is still within the bullish range, but momentum continues to wane. The decline in the index reflects both profit-taking after reaching an all-time high and the seasonal slowdown in trading activity during the summer. The report specifically warns: "If prices weaken further, this indicator could fall into negative territory, causing the bullish index to drop below 40 for the first time since April 2023—this would officially confirm a shift to a bear market." Julio Moreno, CryptoQuant's Head of Research, added: "A rate cut at the Federal Reserve's September meeting could serve as a new catalyst, which aligns with broad market expectations."