Bitcoin faced a challenging August, mirroring expected seasonality trends. The cryptocurrency saw an 8% decline throughout the month, dropping to just above $108,000, and erasing gains from a summer rally. In contrast, Ethereum experienced a 14% increase in price, indicating a shift in capital flows, particularly towards ETH ETFs, which amassed $4 billion in inflows compared to the $629 million for Bitcoin ETFs. This diversion of investment may be reflective of broader economic conditions as monetary policy tightens. Historically, September has also proven unfriendly to Bitcoin, with an average decline of 3.8% since 2013, raising concerns for BTC investors as they look ahead. However, the small sample size could mitigate the reliability of these trends, suggesting caution in drawing firm conclusions for future performance.

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