[DigitalToday reporter Yoonseo Lee] Bitcoin broke above $72,500, hitting its highest level in 11 weeks.

On Aug. 20 (local time), Bitcoin retested the $71,000 level before rising to around $72,800, blockchain media outlet Cointelegraph reported. It was up more than 4 percent on the day.

The rise came as tensions surrounding the United States and Iran resurfaced as a market variable. U.S. President Donald Trump warned Iran of an unprecedented economic crisis and called it an "economic D-Day." The remarks are interpreted as coming amid discontent over oil transport routes through the Strait of Hormuz.

In the aftermath, U.S. stocks opened weaker and international oil prices surged. West Texas Intermediate (WTI) rose to $87.69 a barrel, its highest level since July 24.

U.S. Treasury yields, which had plunged a day earlier after the U.S. Treasury announced expanded intervention to provide liquidity to the bond market, also rebounded. The 30-year yield fell as low as 5.179 percent intraday before rising to 5.266 percent, up 9 basis points, and the 10-year yield also reversed the previous day's decline.

Some in the market also said it would be difficult to curb volatility with the Treasury's response alone. In a post on X, formerly known as Twitter, analytics firm The Kobeissi Letter said, "Much more intervention will be needed to tame the beast." The U.S. Treasury has said it will review the size of its debt purchases again on Nov. 4.

Some also see it as still uncertain whether Bitcoin's rebound immediately means a return to a bull market. Bitcoin has risen by close to $10,000 over the past 4 days, but some investors think the durability of the rally needs to be confirmed.

Trader Rekt Capital said it is hard to conclude that bearish expectations have been invalidated based only on Bitcoin's recent move. "A larger rise is needed to overturn the bear case," he said, adding that technical analysis shows $60,000 is acting as a weakening long-term support line. He also said that, considering the 4-year cycle pattern, there is a possibility a new long-term low could form by the end of 2026.

Some improvement signals were also detected in on-chain indicators. Ki Young Ju (주기영), chief executive officer of CryptoQuant, said Bitcoin demand has turned positive again in both the spot and derivatives markets. He said this was the first time since October 2025, when Bitcoin hit its all-time high (ATH) of $126,200. He added that "if this trend continues for another month, it would be reasonable to judge that the bear market has ended and a new bull cycle has begun."

The market's next point of focus is expected to be whether the demand recovery continues rather than the price surge itself. Whether spot demand keeps building and whether Bitcoin can hold on to its gains amid macro uncertainty remain key variables that will determine the nature of this rebound.

For the first time since the October 2025 ATH, Bitcoin demand has turned positive in both spot and perpetual futures. The scale remains modest, but if this holds for another month, it would be reasonable to conclude that the bear market is over and a new bull cycle has begun. pic.twitter.com/e8TAqeLySd