Bitcoin's Strong August Rally Faces Hurdles in Red September
Bitcoin's strong August performance is being met with cautious optimism as it enters September. The cryptocurrency posted its first green August in five years and its best monthly gain since November 2024, with a gain of roughly 25%.
The surge was largely driven by demand for U.S.-listed spot Bitcoin ETFs, which saw their largest monthly inflows in around 10 months. This has some investors wondering whether renewed institutional demand can outweigh the historically poor performance of Bitcoin in September.
Analyst Willy Woo estimates that about 5% of the world already owns Bitcoin, slightly above his estimates for gold and the S&P 500. However, Woo also noted that if adoption eventually reaches a much larger share of the population, Bitcoin could take on a broader role in the monetary system.
Some analysts are warning of a potential pullback, with Benjamin Cowen predicting a seasonal drop before a bounce in October. Michaël van de Poppe also suggested a 20 to 40% drop in September or October is still possible.