Bitcoin Defies Summer Slump With 25% Return in August
Bitcoin's summer slump was absent in August as the cryptocurrency delivered its third-best performance ever. The asset returned 25% last month, according to Bitwise's European Head of Research, André Dragosch. Dragosch highlighted that only two other Auguses have been better: 2017 with a return of nearly 66%, and 2013 with close to 31%. Bitcoin's August performance marks the end of what is typically considered a weaker period for returns.
The change in bitcoin's fortunes came after the U.S. Treasury Department announced it would more than double the size of its government debt repurchases due to fixed income markets under pressure and yields surging to levels not seen in nearly 20 years. Lower long-term yields reduce the opportunity cost of holding non-yielding assets like bitcoin and gold, supporting risk-on sentiment.
Investors flocked into bitcoin as a result, with positive news soon following. President Donald Trump urged lawmakers to pass the long-awaited crypto Clarity Act, which has been called for by the digital asset industry to provide clear rules on how regulators should treat bitcoin, stablecoins, and other cryptocurrencies.