Bitcoin is known for its summer slumps. But August was different.
In fact, the leading cryptocurrency had its third best August ever.
As highlighted on Tuesday by Bitwise’s European Head of Research, André Dragosch, bitcoin delivered returns of 25% last month.
“No ‘summer lull’ so far,” Dragosch wrote on X, highlighting that the only better Augusts the coin has had were in 2017 when it gave investors returns of nearly 66%, and 2013, with close to 31%.
Multiple analyses point to the months of June-September showing weaker average returns than the rest of the year.
Throughout most of June and July, bitcoin’s volatility was particularly muted, and the coin traded below $65,000.
But that changed in mid-August after the U.S. Treasury Department said it would more than double the size of its government debt repurchases due to fixed income markets under pressure and yields surging to levels not seen in nearly 20 years.
Lower long-term yields reduce the opportunity cost of holding non-yielding assets like bitcoin and gold, and generally support risk-on sentiment.
Investors flooded into bitcoin as a result.
Positive news soon followed, with President Donald Trump urging lawmakers to get the long-awaited crypto Clarity Act over the line. The digital asset industry has long called for clear rules on how regulators should treat bitcoin, stablecoins and other cryptocurrencies.
Despite a delay in a vote on the legislation, Trump called the draft “very powerful.” The president made the comments after having met with crypto industry bigwigs and CEOs.
Investors also rushed back into ETFs in August, throwing over $2.8 billion at the vehicles — the most since October, when the coin hit a new all-time high.
Bitcoin in August had its best run in three years — and is up nearly over 20% over the past month.
The asset reached as high as $81,281 last week before sliding again on Friday.
Bitcoin’s price recently stood at $76,883, nearly down 3% over a 24-hour period.