Bitcoin Holds $78K After 24% August Rally: Is a September Correction Coming?

Bitcoin, the pioneer cryptocurrency, is now trading around $78,320 after a modest pullback, but it is still up about 2% over the past week. While $BTC is ending August with a strong 24% gain, raising the question of whether the rally will continue into September, a month that has historically seen an average 3% decline.

Here’s what the historical data suggests.

Bitcoin Ends August With 24% Gain

Since the start of August, Bitcoin has jumped 26%, rising from around $60,000 to a high of $81,455. The strong move also helped Bitcoin break its long-running pattern of weak August performance.

One of the key reasons behind Bitcoin’s jump came after the U.S. Treasury doubled its long-term bond buybacks from $2 billion to at least $4 billion per operation.

At the same time, institutional demand for Bitcoin picked up, with U.S. spot Bitcoin ETFs reportedly attracting more than $3 billion in August, including about $924 million in the final week.

Despite Bitcoin’s strong August, the market is now entering a historically weaker period. September has been Bitcoin’s worst performing month on average, with the cryptocurrency posting an average return of around -3%.

Strong July and August Could Set Up a Weak September