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Bitcoin Soars to 32% Q3 Return Amid August Rally

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Bitcoin's third-quarter return has surged to 32% after a strong August rebound. This performance surpasses its average quarterly gain of 7.94%. The cryptocurrency has been on an upward trajectory since recovering from lows around $63,000 and briefly touching $80,000.

The Q3 rebound is reminiscent of the market setup in 2017, when Bitcoin's third-quarter return reached 80.41% before surging another 215.07% during the fourth quarter. The asset's current performance could potentially lead to a similar outcome.

US spot Bitcoin ETFs have attracted $1.92 billion in inflows over five trading sessions through August 21, marking their strongest weekly inflow since October 2025. Monthly ETF inflows reached $2.72 billion by August 24, with August becoming the strongest month for the products this year.

Derivatives activity also intensified during the rally, with about $9.71 billion in cryptocurrency liquidations across two weeks. Short positions accounted for roughly $6.55 billion, while long liquidations reached about $3.16 billion. The imbalance showed that bearish traders absorbed most forced closures during the rally.

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