Bitcoin Gains 25% in August as ETFs and Policy Boost Rally

| bitcoinmagazine.com
Bitcoin rose 25% in August 2026, recording its third-best August performance on record. Only August 2017, when it gained 65.6%, and August 2013, when it rose 30.7%, were stronger, according to Bitwise research head André Dragosch. The rally followed subdued volatility in June and July, when Bitcoin traded below $65,000. In mid-August, the US Treasury announced plans to more than double the maximum size of individual buybacks for 10- to 30-year Treasury bonds, from at least $2 billion to $4 billion. Traders viewed the move as potentially easing pressure on long-term yields, reducing the opportunity cost of holding non-yielding assets such as Bitcoin and gold. Bitcoin also benefited from renewed political support for the US crypto Clarity Act, with President Donald Trump urging lawmakers to advance the legislation. Spot trading activity strengthened, while Bitcoin exchange-traded funds recorded more than $2.8 billion in August inflows, their strongest monthly result since October. Earlier data also showed weekly crypto ETP inflows of 31,740 BTC and a short squeeze involving about $1.37 billion in liquidated short positions on 19 August. Bitcoin reached $81,281 before retreating to about $76,883, down nearly 3% over 24 hours in the latest update. The strong monthly performance remains bullish for Bitcoin, but the pullback highlights volatility and profit-taking risk. Traders should monitor whether $80,000 becomes support, whether ETF inflows continue, and whether the US dollar and Treasury yields resume rising. September’s historically weak average return also warrants caution.
Bullish
The news is bullish for Bitcoin because the cryptocurrency posted a 25% monthly gain, attracted strong ETF inflows and benefited from expectations of lower long-term Treasury yields. Renewed political support for the Clarity Act could also improve regulatory visibility and institutional participation over the longer term. In the short term, however, the move remains vulnerable to profit-taking. Bitcoin fell nearly 3% over 24 hours after reaching $81,281, and the August rally was partly intensified by short liquidations. Traders should therefore watch whether $80,000 holds as support and whether ETF inflows remain positive. A stronger US dollar, rising Treasury yields or historically weak September seasonality could limit further gains. Overall, the combination of institutional demand, regulatory optimism and supportive macro expectations outweighs the near-term correction risk, but volatility is likely to remain elevated.