3 Reasons Why Bitcoin (BTC) Could Rally Hard This August

TL;DR

• With US rate of interest minimize odds in September leaping to nearly 80%, markets could begin pricing in bullish momentum early – doubtlessly benefiting BTC all through August.
• Some analysts imagine the asset has but to enter its “thrill” and “euphoria” phases, which may result in a renewed value rally.

Main Beneficial properties This Month?

Bitcoin (BTC) soared to an all-time excessive of over $123,000 in July however is at present buying and selling effectively under $120,000. And whereas some have began doubting the asset’s potential to realize new good points within the quick time period, listed here are three essential components that counsel the continued month could be extremely helpful.

Let’s begin with an overlook of BTC’s efficiency in August in the course of the previous 11 years. The first cryptocurrency has completed the month within the inexperienced zone solely 4 occasions – in 2013, 2017, 2020, and 2021.

Curiously, it has at all times managed to shut August with some good points after a halving 12 months. The most recent halving, which decreased the miners’ rewards for including new blocks in half, occurred in 2024. We now have but to see whether or not the present month will comply with the historic pattern or whether we will witness an exception.

We transfer on to the potential decreasing of rates of interest in the USA. The most recent jobs information report indicated that the economic system is weaker than beforehand anticipated, which suggests the Federal Reserve is perhaps extra inclined to drop the benchmark. In keeping with Polymarket, the percentages of such a transfer coming in September have soared from 35% to nearly 80%.

Decrease charges will make borrowing cash cheaper and should encourage buyers to tackle riskier investments, resembling these in cryptocurrencies like BTC. Markets typically start pricing in such occasions earlier than the precise announcement, with enthusiasm and optimism constructing early.

Lastly, we’ll study BTC’s MVRV, which compares the asset’s market capitalization to its realized capitalization, serving to merchants decide whether or not it’s undervalued or overvalued. 

Over the previous month, the ratio has fluctuated throughout the wholesome vary of two.2 to 2.4, indicating that there’s nonetheless potential for additional appreciation. Based mostly on CryptoQuant’s evaluation, ranges above 3.7 have traditionally aligned with cycle tops, whereas values beneath 1 have corresponded with market lows.

Ready for These Phases

Many analysts imagine BTC has far more gasoline left to achieve recent peaks. X person Mags assumed that the asset is but to enter the “thrill” and “euphoria” zones, predicting a rally above $200,000. Nonetheless, this normally marks the top of the bull run and might be adopted by a steep correction to roughly $100,000.

#Bitcoin is about to enter Thrill. pic.twitter.com/uz1D2uGnYm

— Mags (@thescalpingpro) August 7, 2025