September will test whether Bitcoin’s August rebound can last

Bitcoin’s move above $80,000 in August shifted the question from whether the cryptocurrency could recover to whether it can rebuild a lasting upswing toward its October 2025 record near $126,000. It gained about 23% in the week through August 26 as US spot Bitcoin funds drew $1.92 billion, a sign that conventional investment vehicles were again bringing buyers into the market. But the surge was amplified by short covering: traders who had bet on a decline had to buy Bitcoin to close those positions, which can accelerate a rally without creating lasting demand. September will therefore test whether fund inflows persist, whether a softer dollar and lower Treasury yields keep risk appetite supportive, and whether clearer US crypto rules draw more institutional money.