Bitcoin Posts Strongest August Performance Since 2017 with 25% Surge
Bitcoin (BTC) has been on a tear in August, posting its strongest monthly gain since 2017. The cryptocurrency rose about 25% last month, according to market strategist Joel Kruger of LMAX Group. This performance is notable given the current market conditions, which include rising bond yields and a stronger dollar.
The surge in Bitcoin's price can be attributed to the inflows into US spot exchange-traded funds (ETFs), which recorded net inflows totaling $924 million over nine consecutive trading sessions. However, this trend reversed on August 28, when the funds posted net outflows of $202 million.
Kruger identified $80,000 to $82,820 as a key resistance zone for Bitcoin. He noted that a sustained move above this range could restore the potential for a rally back above $100,000. However, he also cautioned that the market may be entering a period of consolidation before making further gains.
The upcoming US August nonfarm payrolls report due on September 4 may be the key catalyst for Bitcoin's next move. Markets expect payrolls to increase by 55,000 and the unemployment rate to remain at 4.1%. A weaker-than-expected jobs reading could alter expectations for the Fed's September rate move.