Bitcoin posted a cumulative gain of nearly 25% in August as the cryptocurrency began its monthly close above $79,020, despite continued pressure and several sessions of high volatility across major trading venues.
The largest cryptocurrency by market capitalization held the $78,200-$78,700 range during the past 48 hours. The technical support came as liquidity continued to increase across regulated spot trading platforms.
Data from CoinGlass showed that short-position liquidations on major exchanges exceeded $180 million over the past week. Market analysts said the liquidations triggered automatic buybacks on the open market, adding bullish momentum while programmed institutional selling continued.
Bitcoin’s daily spot trading volume surpassed $34 billion on the last business day. Data from CoinMarketCap and CoinGecko indicated that the level was 14% above the moving average recorded in the middle of the month.
Meanwhile, the funding rate for Bitcoin perpetual contracts remained moderate at approximately 0.008% over the past 24 hours. Market analysts said the figures suggest that the latest move is being driven primarily by spot buying rather than excessive speculative leverage in derivatives.
Bitcoin Derivatives and Institutional Demand
Spot Bitcoin exchange-traded funds (ETFs) in the United States recorded net inflows of $420 million over the past five trading sessions.
Official issuer data showed that the cumulative net inflows offset outflows recorded earlier in the third quarter. Analysts at Bloomberg Intelligence said steady demand from institutional asset managers had helped reduce the amount of Bitcoin available on over-the-counter (OTC) desks.
Bitcoin’s mining difficulty reached a record 102 trillion hashes in the latest biweekly adjustment. Technical documentation from the protocol showed that the network’s average computing power, or hashrate, stood at 730 EH/s at the end of August, reflecting continued expansion of mining infrastructure.
Long-term Bitcoin holders also showed signs of stability after the latest price increase. Metrics from analytics firm Glassnode indicated that more than 65% of the total circulating supply had remained dormant for over a year. The firm’s technical report said slower distribution by these holders has historically been associated with structural consolidation phases before new volatility cycles.
The next major economic event for Bitcoin markets is scheduled for the first week of September, when the United States Bureau of Labor Statistics is due to release its official nonfarm payrolls and employment report. The data could directly influence expectations for Federal Reserve monetary policy.
