Bitcoin posted its third-best August on record, delivering a 25% return last month and breaking the pattern of seasonal summer weakness that typically affects the leading cryptocurrency.
Only two previous Augusts outperformed: August 2017, when bitcoin gained 65.6%, and August 2013, with a 30.7% gain, according to analysis from Bitwise's European Head of Research, André Dragosch.
Market drivers
The rebound began in mid-August following a U.S. Treasury Department announcement to increase government debt repurchases. Lower long-term yields reduce the opportunity cost of holding non-yielding assets like bitcoin and typically support risk-on sentiment among investors.
Political developments also contributed to the move higher. President Donald Trump urged lawmakers to advance the Crypto Clarity Act, calling the draft "very powerful" after meeting with crypto industry executives. The digital asset sector has long sought regulatory clarity on how rules should apply to bitcoin, stablecoins, and other cryptocurrencies.
Bitcoin investors also returned to exchange-traded funds in August, allocating over $2.8 billion to the vehicles—the most since October, when the asset reached a new all-time high.
Price action
Earlier volatility had kept bitcoin below $65,000 through most of June and July. The asset reached as high as $81,281 last week before retreating. Bitcoin recently traded near $76,883, down approximately 3% over a 24-hour period.
