Bitcoin Breaks Summer Weakness Pattern with Record-Breaking August Surge
Bitcoin defied expectations by posting its third-highest August return on record, rising 25 percent in the month and breaking the usual 'summer weakness' pattern.
The cryptocurrency's surge was attributed to a combination of factors, including the U.S. Treasury's plan to expand bond buybacks, which more than doubled the size of buybacks to respond to pressure in the bond market and interest rates that have surged to their highest level in 20 years.
Lower long-term yields can reduce the holding burden for non-interest-bearing assets such as bitcoin and gold, leading investment funds to flow quickly into the digital asset. U.S. President Donald Trump's call for Congress to pass a crypto clarity bill also supported the rise, although the vote was delayed.
The turning point came mid-August, after which bitcoin climbed at one point to the $81,000 range but has since edged back to around $77,000, down about 1.54 percent over 24 hours.