Bitcoin defies seasonal slump with third-best August ever

Bitcoin delivered 25% returns in August, its third-best August ever. Bitwise's European Head of Research André Dragosch highlighted the performance. Bitcoin returned nearly 66% in August 2017. Bitcoin returned close to 31% in August 2013. Multiple analyses show that June through September has weaker average returns than the rest of the year. Bitcoin volatility stayed particularly muted through most of June and July. Bitcoin traded below $65,000 during that period. The U.S. Treasury Department said in mid-August that it would more than double government debt repurchases. The department cited pressure in fixed-income markets and rising yields. Lower long-term yields reduce the opportunity cost of holding non-yielding assets such as bitcoin and gold. Lower yields generally support risk-on sentiment. Bitcoin investors increased their buying after the Treasury announcement. President Donald Trump urged lawmakers to pass the crypto Clarity Act. The digital asset industry has called for clear rules on regulatory treatment of bitcoin, stablecoins, and other cryptocurrencies. A vote on the legislation was delayed. Trump called the draft very powerful after meeting crypto industry executives and CEOs. Bitcoin exchange-traded funds received more than $2.8 billion in August. That was the highest inflow since October, when bitcoin reached a new all-time high. Bitcoin had its best run in three years during August. Bitcoin was up nearly 20% over the past month. Bitcoin reached $81,281 last week before falling on Friday. Bitcoin recently traded at $76,883, down nearly 3% over 24 hours.