Bitcoin crossed above its 365-day moving average, a technical benchmark that CryptoQuant identifies as a cycle-defining signal marking the end of bear markets and the start of previous bull runs. The cryptocurrency recently traded at $86,598 after reaching nearly $87,330 on Monday, following an August surge that became its strongest run in years. That rally followed an announcement from the U.S. Treasury, the government finance department, that it would at least double liquidity-support buyback operations. CryptoQuant said long-term holders appear to have finished selling, potentially creating room for new investors. Bitcoin had reached a record $126,080 in October last year before falling after a crypto liquidation event closed more than $19 billion in bets. The decline continued during the first half of this year amid Federal Reserve policy and strong investor demand for artificial intelligence stocks. The report said renewed interest in the debasement trade, in which investors use assets to hedge against currency depreciation, has supported Bitcoin and gold as the dollar weakened. The Federal Reserve also raised interest rates last week to address high U.S. inflation, but investors continued buying Bitcoin. Total U.S. debt exceeded $40 trillion for the first time in August.