Bitcoin Surges 25% in August for Best Monthly Gain Since 2017

• Bitcoin (BTC) rose about 25% in August, giving it its strongest August performance since 2017.
• US spot Bitcoin ETFs supported prices with a total of $924 million in net inflows over nine consecutive trading sessions.
• Kruger said $80,000 to $82,820 is a resistance zone, and a break above it could create room for a move beyond $100,000.

Forecast Trend Report by Period

Bitcoin climbed about 25% last month, posting its strongest August performance in nine years.

Joel Kruger, market strategist at LMAX Group, told The Block on Sept. 1 that Bitcoin rose about 25% in August, its best showing for the month since 2017. It was also the cryptocurrency’s biggest monthly gain since November 2024.

Bitcoin has held on to most of those gains after the rally. It traded around $78,000 on Sept. 1. Pressure on risk assets has increased as military conflict between the US and Iran escalated again and Brent crude rose above $90 a barrel. Even so, Bitcoin has not undergone a sharp correction.

Rising expectations for a September interest-rate increase after Federal Reserve Chair Kevin Warsh’s Jackson Hole speech have added to the headwinds. Kruger said Bitcoin’s resilience is notable given rising bond yields, a stronger dollar and geopolitical tensions, all of which are unfavorable for risk assets.

Bitcoin briefly climbed above $81,000 last week before slipping below $78,000 after Warsh’s hawkish remarks. Even after a 23% jump the previous week, it was nearly unchanged on a weekly basis and preserved much of the advance.

Inflows into spot exchange-traded funds also supported prices. US spot Bitcoin ETFs recorded net inflows totaling $924 million over nine consecutive trading sessions. That trend reversed on Aug. 28, when the funds posted net outflows of $202 million.

Jasper De Maere, an over-the-counter trader at Wintermute, said buying by investors with relatively low Bitcoin allocations is supporting prices. Ahead of the Federal Open Market Committee meeting in mid-September, he identified $75,000 and $82,000 as key price levels. He also pointed to $72,000 as an additional support level.

Kruger said Bitcoin may enter a period of consolidation for now. He identified $80,000 to $82,820 as a key resistance zone, adding that a sustained move above that range could restore the potential for a rally back above $100,000.

In the near term, the US August nonfarm payrolls report due on Sept. 4 may be the key catalyst. Markets expect payrolls to increase by 55,000 and the unemployment rate to remain at 4.1%. A weaker-than-expected jobs reading could alter expectations for the Fed’s September rate move.

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Source: en.bloomingbit.io