**[Starkiller: A New Bull Market is Beginning, All Short Positions Closed Last Month]** BlockBeats News, August 21: Crypto investment firm Starkiller recently published an article stating that the recent two-day strong rally in BTC, combined with the market's performance over the past month, has given the firm high confidence that the "digital asset cycle has bottomed out." The firm also revealed that it closed all short positions last month. Starkiller noted that BTC and ETH previously experienced peak drawdowns of 54% and 70%, respectively, and have now reclaimed their 200-day moving averages. This marks the first time since the end of the last cycle that both assets have achieved this breakthrough. According to its quantitative models, BTC and ETH stabilized near their 50-day moving averages before breaking out with increased volume and reclaiming their year-to-date VWAP. Additionally, this bear market cycle has lasted approximately 315 days, nearing the historical average cycle duration. Starkiller believes that recent efforts by U.S. regulators to advance digital asset market rules, along with the U.S. Treasury's expansion of long-term Treasury bond buybacks, are key catalysts driving the market cycle reversal. While this is not quantitative easing, the Treasury's focus on long-term yields could improve liquidity conditions, and BTC remains highly dependent on liquidity. For the new cycle, Starkiller predicts that most traditional crypto-native assets may not replicate their previous bull market performance. After enduring this market shakeout, investors are expected to place greater emphasis on protocols that generate real revenue and deliver value back to token holders. The firm anticipates that assets like HYPE, LIT, PUMP, VVV, and DRV, which have actual revenue or value capture mechanisms, may attract greater attention, while many tokens lacking fundamental support could become shorting opportunities in the next upward cycle. Starkiller also stated that BTC might experience a short-term correction near $80,000, a level close to the VWAP of its historical high. Nevertheless, the firm remains highly optimistic about areas such as stablecoins, asset tokenization, prediction markets, and on-chain perpetual contracts. It also mentioned being "unprecedentedly bullish" on its long-short liquidity token strategies and market-neutral yield strategies in DeFi. [Original Link]