Bitcoin Posts Third-Hottest August on Record, Sidestepping Usual Summer Slide

Bitcoin typically drifts lower in the summer, but this August broke that pattern.

The leading cryptocurrency closed out the third-strongest August in its history.

Bitwise's European head of research, André Dragosch, noted on Tuesday that bitcoin delivered a 25% return last month.

“No ‘summer lull’ so far,” Dragosch wrote on X, adding that the only better Augusts were 2017, when it returned nearly 66%, and 2013, with close to 31%.

OFFICIAL: August 2026 is in the books and it's been the 3rd best August in bitcoin's history.

August 2017: +65.6%
August 2013: +30.7%
August 2026: +25.0%

No "summer lull" so far.

— André Dragosch, PhD (@Andre_Dragosch), September 1, 2026

Several analyses show that average returns between June and September are weaker than in the rest of the year.

For most of June and July, bitcoin traded below $65,000 and volatility was unusually subdued.

That shifted in mid-August when the U.S. Treasury Department said it would more than double the size of its government debt repurchases, explaining that fixed income markets were under pressure and yields had surged to levels last seen nearly 20 years ago.

Lower long-term yields reduce the opportunity cost of holding non-yielding assets such as bitcoin and gold, which generally supports risk appetite.

As a result, investors poured into bitcoin.

Positive developments followed, with President Donald Trump urging lawmakers to pass the long-awaited crypto Clarity Act. The digital asset industry has long sought clear rules for how regulators should treat bitcoin, stablecoins and other cryptocurrencies.

Although the legislation's vote was delayed, Trump called the draft “very powerful.” He spoke after meeting crypto industry heavyweights and chief executives.

Investors also returned to exchange-traded funds in August, putting more than $2.8 billion into those vehicles, the biggest monthly inflow since October, when bitcoin set a new all-time high.

August marked bitcoin's best monthly performance in three years, with the coin up nearly 20% over the past month.

Last week, the price reached $81,281 before slipping back on Friday.

Bitcoin was recently trading at $76,883, down nearly 3% over 24 hours.