Bitcoin (BTC) rebounded from roughly $63,000 in August and ended the month around $78,000 to $79,000, up about 24% to 25% on the month. That was its best monthly showing since November 2024, when it rose about 37%. At one point during the rally, BTC moved above $81,000, returning to levels last seen in mid-May.
The source report, citing coinglass data, said the advance was driven by three forces: macro policy, regulatory expectations, and market structure.
U.S. Treasury buyback change drew market attention
On Aug. 19, the U.S. Treasury announced that starting Sept. 9 it would raise the single-operation cap for liquidity buybacks of 10- to 30-year Treasurys from $2 billion to at least $4 billion. The report said the operation was part of bond-market liquidity management, not Federal Reserve quantitative easing.
Even so, the market viewed the step as an attempt by officials to ease pressure on long-dated yields. As the dollar weakened, funds tied to what the report described as a "currency debasement trade" also moved into gold and Bitcoin.
SEC proposal added to regulatory optimism
On the regulatory side, the U.S. Securities and Exchange Commission proposed a rule titled "Regulation Crypto Assets." The draft includes an exemption framework for crypto-asset issuance and a safe harbor for investment contracts. According to the report, that improved expectations around the predictability of U.S. crypto regulation.
Volume growth, inflows and short covering amplified the move
Market structure added to the rally. K33 data showed Bitcoin's average daily spot trading volume at one stage rose 188% week over week to $4.7 billion. Exchange-traded products recorded net inflows of 31,740 BTC in a single week.
On Aug. 19, about $1.37 billion in short positions were liquidated, producing what the report called a historic short squeeze.
Questions remain after the rebound
The report also said the rebound still carried a strong policy-trade and short-covering element. Bitcoin remains about 38% below its all-time high from October 2025. Since 2014, September has delivered an average return of negative 2.2%.
The next key points for the market, according to the report, are whether $80,000 can shift from resistance into support, whether institutional inflows continue, and whether the dollar and U.S. Treasury yields turn higher again. The article said August trading confirmed a recovery in risk appetite, but did not by itself prove that a new broad bull market has begun.