BlockBeats News, August 21st. Cryptocurrency investment firm Starkiller recently stated in a new article that with the recent two-day strong rise in BTC and considering the market performance over the past month, the firm has a high level of confidence that the "digital asset cycle has bottomed out," and revealed that it exited all short positions last month.

Starkiller stated that BTC and ETH had previously experienced peak retracements of 54% and 70%, respectively, and have now reclaimed the 200-day moving average. This is the first time both have achieved this breakthrough since the end of the last cycle. Their quantitative model also indicates that BTC and ETH stabilized near the 50-day moving average before experiencing a surge in trading volume and reclaiming the year-to-date VWAP. Furthermore, the current bear market cycle has lasted about 315 days, approaching the historical average.

Starkiller believes that recent proactive efforts by U.S. regulatory agencies to advance digital asset market regulations, along with the U.S. Treasury expanding long-term bond repurchases, are key catalysts for driving the market cycle reversal. While not quantitative easing, the Treasury's focus on the long-end yield may improve the liquidity environment, which BTC still heavily relies on.

Regarding the new cycle, Starkiller believes that most traditional native crypto assets may not replicate their previous bull market performance. After investors' experience in this market shakeout, they will pay more attention to real income and protocols that can provide value back to token holders. They expect assets with actual revenue or value-capture mechanisms such as HYPE, LIT, PUMP, VVV, and DRV to receive more attention, while tokens lacking fundamental support could become shorting opportunities in the new uptrend cycle.

Starkiller also mentioned that BTC may undergo a phase of adjustment around $80,000 in the short term, which is close to the VWAP of historical highs. Nevertheless, the firm remains highly optimistic about stablecoins, asset tokenization, prediction markets, and on-chain perpetual contracts, stating that it has an "unprecedentedly bullish" view on its long-short liquidity token strategy and DeFi market-neutral income strategy.