Bitcoin's August Surge Hits Critical Support Level

Bitcoin's price surge in August has put it at a critical junction. The cryptocurrency rose by 24% that month, its strongest monthly gain since November 2024, before stabilizing around $78,000.

High oil prices and rising US Treasury bond yields have limited further gains in BTC, while expectations for an interest rate hike in September have increased following Federal Reserve Chairman Kevin Warsh's speech at Jackson Hole.

Despite this, analysts from Bitfinex note that Bitcoin is holding onto its critical support level at $77,100. They attribute the August surge not just to leveraged trading, but also to actual spot market purchases.

A total net inflow of $924.5 million into US spot Bitcoin ETFs during the week of August 24-28 supported the rise in BTC's price. However, Bitfinex warns that high inflation and expectations of future interest rate hikes could limit further gains.