.png){kind=logo}
Bitcoin is heading toward its strongest August performance in nine years after rebounding from about $63,000 and briefly moving above $80,000. The recovery lifted its third-quarter return to about 32%. It also reversed much of the pressure from two consecutive quarterly losses.
Bitcoin’s Q3 return stood near 32.48% at the time of writing. This far exceeds its average third-quarter return of 7.94%. The move followed losses of 22.2% in Q1 and 14.09% in Q2. Still, September trading will determine Bitcoin’s final third-quarter performance.
The closest stronger Q3 came in 2017, when Bitcoin gained 80.41%. It then rose another 215.07% during the fourth quarter. After a brief September correction that year, Bitcoin climbed about 325% from its late-August level and approached $20,000 by mid-December. Could the 2017 pattern repeat after this August rebound?
Bitcoin entered August after months of weakness. The asset fell toward $58,000 in July before recovering above $60,000 and accelerating later in August.
US spot Bitcoin ETFs attracted about $1.92 billion during the five trading sessions through Aug. 21, according to SoSoValue. This marked their strongest weekly inflow since October 2025. By Aug. 24, monthly ETF inflows had reached about $2.72 billion. At that point, August ranked as the strongest month of 2026 for the products.
A single trading session produced $517 million in net inflows as Bitcoin moved above $70,000. The renewed demand followed heavy ETF redemptions during May and June. The rally also followed the US Treasury’s decision to double its long-dated bond buybacks. Meanwhile, ETF flows offered a clearer gauge of regulated US demand than derivatives liquidations.
Daily ETF flows can reverse quickly. Therefore, continued accumulation during September would remain important as Bitcoin tests the area around $80,000.
Derivatives activity also intensified during the rally. CoinGlass data cited in the source material showed about $9.71 billion in cryptocurrency liquidations across two weeks. Short positions accounted for roughly $6.55 billion, while long liquidations reached about $3.16 billion. Those figures covered the broader cryptocurrency market rather than Bitcoin alone.
The imbalance showed that bearish traders absorbed most forced closures during the rally. At the same time, futures open interest measured in BTC declined while funding rates remained contained.
Also Read: Bitcoin’s Quantum-Safe Transaction is Live: What it Means for BTC Holders, Future
That combination suggested short covering helped drive the initial breakout without extreme leveraged long positioning. Bitcoin advanced about 22% as it pushed above $70,000 and later crossed $80,000.
Fidelity’s Jurrien Timmer also said Bitcoin had held the floor of its power law curve. He said the correction had lasted long enough to satisfy the time element of a mild four-year cycle winter.
Bitcoin’s August rebound lifted Q3 gains above 32% after two losing quarters, while ETF inflows and heavy short liquidations accompanied the move. Bitcoin also briefly crossed $80,000. September now determines the final quarterly return and whether demand remains strong near that level.
