Bitcoin and other major cryptocurrencies staged a strong rally in August, with the broader crypto market gaining, as investor flows returned to digital assets. Bitcoin’s seven day rally during the month was among the strongest recorded since 2020, according to Binance Research.
Bitcoin rose 20.80 per cent in August, while several other cryptocurrencies posted bigger gains. HYPE gained 50.20 per cent, followed by Chainlink at 38.80 per cent, Solana at 35.30 per cent and Ether at 28 per cent.
In its Monthly Market Insights, September 2026 report, Binance Research said Bitcoin’s 24.80 per cent seven-day rally ranked in the top 1 per cent of weekly gains since 2020. The report attributed the broader crypto market rally to stronger exchange-traded fund (ETF) flows and macroeconomic conditions.
ETF Flows Support August Crypto Rally
The overall cryptocurrency market capitalisation rose 17.60 per cent to $2.70 trillion in August. Spot Bitcoin ETFs recorded US$3.52 billion in inflows during the month, compared to $172 million in July. The funds also recorded nine consecutive days of inflows between August 17 and 27.
Ether products also saw strong demand, recording a 2026 high of $824 million in inflows in the week to August 28. Stablecoin allocation among Binance users fell 22 per cent during the week to August 23, which Binance Research said pointed to fresh deployment into crypto assets.
The report said the rally was driven largely by macroeconomic conditions rather than crypto specific developments. Treasury buyback activity put pressure on yields and the dollar, while around $2.70 billion worth of short positions were liquidated as demand returned to the market.
What Could Shape Crypto Markets In September
Binance Research said Bitcoin’s 24.80 per cent weekly rally had historical precedent. In all seven previous instances of similar gains since 2020, Bitcoin was higher one month later. It was also higher two months later in six of those seven cases, with an average two month gain of 18.30 per cent. The research firm cautioned that the sample is small and should not be treated as a prediction.
For September, the sustainability of the rally will depend on whether spot and ETF demand continues amid tighter monetary conditions. The US Federal Reserve’s policy outlook, upcoming inflation data and the closure vote on the CLARITY Act on September 15 could influence crypto markets.
Despite the strong gains across several tokens, a broader shift towards altcoins has not yet been confirmed. The Altcoin Season Index stood at 37, below the 75 threshold, while Bitcoin dominance remained around 59.70 per cent.
At the time of writing, Bitcoin (BTC) was trading at $78,405.11, down 1.23 per cent, while Ethereum (ETH) was at $2,477.44, down 0.52 per cent, according to CoinMarketCap.
