Bitcoin Holds Near $78,000 as August Rally Fades
Bitcoin's August rally has come to an end, but the cryptocurrency remains near its recent high of $81,300. As of August 31, BTC is trading around $78,000-$79,000 after a sharp recovery earlier in the month pushed it above $80,000.
The US Treasury's decision to increase long-term bond buybacks contributed to the rally, which saw Bitcoin gain roughly 25% during its strongest phase. The move weakened the dollar and encouraged investors to look towards scarce assets such as Bitcoin and gold.
Traders are now watching macroeconomic signals, ETF flows, Treasury policy, and Federal Reserve decisions closely before deciding whether the latest rally can continue. A sustained move above $80,000 could revive expectations of another attempt at the August high, while a failure to hold current support could increase selling pressure.