Bitcoin Crushes Summer Slump with Record-Breaking August Returns
Bitcoin's summer slump has been avoided this year as it posted its third-best August performance ever. According to Bitwise's European Head of Research, André Dragosch, Bitcoin delivered returns of 25% in August, outperforming expectations.
The only better Augusts for Bitcoin were in 2017 when it gave investors returns of nearly 66%, and 2013, with close to 31%. This news comes as a relief to investors who have been bracing themselves for the usual summer slump that often affects the cryptocurrency market.
A key catalyst for Bitcoin's performance was the US Treasury Department's decision to more than double its government debt repurchases due to fixed income markets under pressure. This move lowered long-term yields, reducing the opportunity cost of holding non-yielding assets like Bitcoin and gold.
Investors flooded into Bitcoin as a result, with President Donald Trump also lending his support by urging lawmakers to pass the Clarity Act, which would provide clear rules for regulating cryptocurrencies. The asset's price reached an all-time high of $81,281 last week before sliding back down on Friday.