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Bitcoin Surges to Strongest August Since 2007

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Bitcoin has recorded its strongest August performance in nine years, setting the stage for a potentially explosive fourth quarter. The cryptocurrency's late-summer rally is drawing comparisons to the historic price action that preceded the 2017 bull run.

The third-quarter return for Bitcoin currently stands at a robust 32.48%, putting an end to the bearish trend that dominated the first half of the year. This is significantly higher than the average Q3 return of 7.94%.

In fact, traders have to look back to 2017 to find a more explosive third quarter, with Bitcoin registering an 80.41% gain in Q3 before launching into a massive 215.07% rally in Q4.

The recent decision by the U.S. Treasury to double its long-dated bond buybacks is considered to be the main catalyst behind the rally. Additionally, Bitcoin short sellers were squeezed for approximately $6.55 billion during this August.

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