Bitcoin and other top cryptocurrencies followed up a lackluster July with more losses in August. Fortunately, cryptos rebounded in the closing week of the month when a U.S. Court of Appeals ruled the U.S. Securities and Exchange Commission inappropriately denied Grayscale permission to convert its popular Grayscale Bitcoin Trust into an ETF.
Bitcoin prices plummeted in mid-August in a mass liquidation event some traders blamed partially on Tesla CEO Elon Musk. In addition, commentary from Federal Reserve Chair Jerome Powell at the annual Jackson Hole Economic Symposium suggests crypto investors should prepare for interest rates to remain historically high for an extended period.
Despite the headwinds, the Grayscale court ruling has crypto investors optimistic the market’s bullish late-month momentum will carry over into September and beyond.
Bitcoin prices dipped below $26,000 in mid August but bounced back to close out the month at $27,371, a 5.2% monthly decline. Ethereum (ETH) prices dropped 7% in August to close out the month at $1,716.
Among the 10 largest cryptocurrencies by market capitalization (excluding stablecoins), Bitcoin’s modest August decline made it the top performer of the month. Litecoin (LTC) was the worst performer with a 28.2% loss.