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[BUSINESS] · United States · 16 sources

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Bitcoin surges 24% in August, marking strongest monthly performance since 2017

Bitcoin has experienced a significant market recovery in August, posting gains of approximately 24%, marking its strongest August performance since 2017. The rally has been driven by several factors, including massive inflows into U.S. spot Bitcoin ETFs—which recorded $1.92 billion in a single week—and a substantial short squeeze that liquidated roughly $6.55 billion in short positions.

Institutional interest remains a primary driver, with asset manager Strive becoming the fifth-largest public corporate Bitcoin holder after acquiring 1,800 BTC. Additionally, Binance saw $12.3 billion in inflows over a seven-day period. On-chain data suggests that while large wallets and funds have been accumulating, smaller holders have been selling into the strength.

Macroeconomic factors are also influencing the market. Bitcoin's 90-day rolling correlation with gold has risen above 50%, while its link to the Nasdaq 100 has weakened to approximately 33%, suggesting a shift toward viewing the asset as a store of value or a hedge against currency debasement. Looking ahead to September, market analysts remain cautious due to potential volatility and Federal Reserve interest rate decisions, with some models projecting a median price target of approximately $81,319.

Entities

Binance · Bitcoin · Federal Reserve · Fidelity · Grayscale · Iran · Kevin Warsh · Nasdaq · Strive

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