Bitcoin’s August Slump Wipes Out Summer Rally as Ether Outperforms
August was a challenging month for bitcoin (BTC), which saw its summer gains largely erased, while ether (ETH) emerged as the preferred destination for investor capital.
Despite record highs earlier in the month and continued inflows into spot ETFs, BTC slipped roughly 8% in August, dropping from its peak above $124,000 to just above $108,000. This decline also marks a 13% pullback from the mid-month high and places the price slightly below its Memorial Day level of $109,500.
Ether Gains Momentum
Ether, by contrast, rose 14% in August, significantly outperforming bitcoin. This surge was fueled by institutional capital flowing into ETH-focused treasury companies and spot ETFs. According to Bloomberg’s James Seyffart, ETH ETFs saw $4 billion in inflows through August 28, compared with $629 million for BTC ETFs. Relative to its smaller market cap of around $500 billion — about a quarter of BTC’s $2.1 trillion — ether’s capital inflows were especially substantial.
The shift underscores that crypto capital is finite, and in August, ether captured a disproportionate share of the available liquidity.
Seasonal Trends Suggest Caution
Historically, September has been a weak month for bitcoin. Glassnode data shows BTC has declined in eight of the past twelve Septembers, averaging a 3.8% drop. However, the small sample size and the fact that many of these observations predate bitcoin’s mainstream adoption mean historical trends should be taken as guidance rather than prediction.
Key Takeaways
- August erased bitcoin’s summer rally, while ether attracted the bulk of institutional capital.
- ETH’s outperforming flows highlight how limited capital can shift markets in short periods.
- Seasonal trends suggest potential pressure for BTC in September, but broader adoption and ETF inflows could influence outcomes.
