Bitcoin has surged 20% over the last week, trading at around $34,000 at the time of writing. In year-to-date terms, the leading digital asset is up 120% and commands the highest level of market dominance that it has in several years.

Indeed, the signs point to a fifth bull run for Bitcoin being officially underway, according to analysts from Matrixport, who suggest that it commenced on June 22, 2023.

In their latest market commentary, the analysts shared a price target of $125,000 for Bitcoin by December 2024, based on their interpretation of a signal that was triggered when Bitcoin hit a new one-year high for the first time in a year.

Unlike previous bull market cycles, which were driven by different narratives like China’s adoption and Initial Coin Offerings (ICOs), the analysts believe that this one has been powered by expectations of institutional adoption.

“Bitcoin’s characteristics, which were traditionally associated with assets like Gold and other safe-haven investments such as Treasury bonds, have led institutions to consider Bitcoin for diversifying their asset allocation,” said the analysts.

“It is not a coincidence that Bitcoin is surging at a time when the United States’ debt-to-GDP ratio is reaching unsustainable levels.”

Matrixport isn’t the only firm with the view that Bitcoin’s breach of a new yearly high is evidence of sufficient market strength. In its latest report analyzing weekly on-chain activity, Glassnode found that Bitcoin had broken above several important pricing levels this week.

“A meaningful proportion of supply and investors now find themselves above the average break-even price, located around $28k. This sets the foundation for a resumption of the 2023 uptrend,” said the analysts at Glassnode.