Bitcoin jumps 25 percent in August, breaking 'summer weakness' pattern

Bitcoin broke the usual "summer weakness" pattern, rising 25 percent in August and posting the third-highest August return on record.

On Sept. 1 local time, blockchain media outlet Bitcoin Magazine reported that bitcoin showed unusual strength last month, overturning the perception of a "seasonal weakness" period.

Andre Dragosch (안드레 드라고시), head of research at Bitwise Europe, wrote on X, formerly Twitter, that "there is still no sign of a summer lull this year." He noted that bitcoin's August performance was the third-highest, after about 66 percent in 2017 and about 31 percent in 2013.

The period from June to September is typically cited as a stretch with weaker average returns than other times. Bitcoin saw low volatility for much of June and July and traded below $65,000. That trend shifted from mid-August.

The turning point was the U.S. Treasury's plan to expand bond buybacks. The Treasury said it would more than double the size of buybacks to respond to pressure in the bond market and interest rates that have surged to their highest level in 20 years. Lower long-term yields can reduce the holding burden for non-interest-bearing assets such as bitcoin and gold. Investment funds then flowed quickly into bitcoin.