Bitcoin Defies August Jinx as Institutions Pump Inflows

Bitcoin's August performance has been historically bearish, with an average loss of nearly 10% from 2022 to 2025. However, this year is shaping up differently, with Bitcoin up over 2% so far in August.

A closer look at on-chain metrics shows that the recent capital inflows may be led by institutions rather than individual investors. This is indicated by the fact that Bitcoin's dominance remains below the key 60% resistance level, but Ethereum's dominance has rallied 11%, its strongest monthly gain since August 2025.

However, this momentum hasn't carried over into August, and Ethereum's dominance has already faced rejection at the 10.4% resistance level. Meanwhile, Bitcoin's dominance is starting to move higher, suggesting that capital is rotating back into Bitcoin.