Bitcoin: highest monthly close in seven months

August was a strong month for the crypto market. The first signs of a reversal are beginning to emerge, but a few hurdles still remain before we can confidently say the outlook has turned positive. There are some exciting weeks ahead. In this edition of the Market News, we will also turn our attention to Asia, where crypto integration into the traditional financial world is gathering pace.

Market update

Last Tuesday, Bitcoin achieved a constructive monthly close for the first time in this bear market. In August, the price rose 24% from €54,500 to €67,600, a neat inverse of June, when the price fell just under 20%.

This is the highest monthly close in seven months, with only January closing slightly higher. In previous market cycles, this has consistently indicated that the bear market bottom was behind us. The rise of the RSI on the monthly chart from below 50 to above 50 also confirms this.

If July does indeed prove to be the bottom of the bear market, it would make for a textbook monthly chart. The zone around €50,000 would then encompass the peaks of the 2021 bull market, the consolidation in the summer of 2024, and the bottom of the 2026 bear market. This creates a neat sequence of resistance, breakout, and a retest as support, offering a solid starting point for a bull market.

We’re not there yet though. On the monthly chart, we still need to overcome two levels: the May 2026 peak at €70,300 and the 12-month average at €69,000. The three weeks remaining until the monthly close will reveal whether August marked the beginning of a reversal or simply a strong rebound within a bear market.

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Asia brings financial markets onchain

Much of the crypto news we see tends to center on the West. But that does not mean things are standing still in the East. Quite the opposite.

Take South Korea, for example. Last week, the country’s regulator presented a roadmap to eventually bring not only security tokens, but also ordinary shares, bonds, and other financial products onchain. Trials are set to begin gradually from next year. In the long term, the entire transaction, from purchase to settlement, could move onto blockchain networks, with stablecoins playing a key role.

A few thousand kilometers away, Singapore is pursuing a similar course. The city is developing legislation that would give stablecoins an official place in the financial system. This includes the conditions we are now familiar with from Europe and the US: full reserves, licensing, and clear authority to freeze or block suspicious assets.

Taiwan is focusing primarily on practical applications. Stablecoins are being explicitly mentioned as a potential solution for international payments in the semiconductor industry. Factories and suppliers operate 24 hours a day, but banks close their doors every Friday afternoon. The idea is that programmable money could bridge that gap.

Thailand, meanwhile, is tightening its safeguards. The country is one of the world’s larger crypto markets but is also grappling with thousands of crypto accounts being used as ‘money mules’ for online fraud. Crypto companies will soon be required to verify the recipient for transactions to personal wallets, a measure also introduced in the EU in 2024.

The common thread is clear: Asia is choosing to integrate cryptocurrencies into the existing financial system. Similar to the EU and the US, the message seems to be: the technology is very welcome, but the anarchy surrounding it is not.

In other news

1. Investors once again significantly increasing their investments into Southeast Asia’s crypto sector. Blockchain companies in the region have already raised $680 million this year, more than twice the amount raised in all of 2025. However, the number of investment rounds decreased from 46 to 25. Furthermore, almost 60% of the capital raised came from a single round: Crypto.com raised $400 million in July. Capital is returning then, but it is primarily flowing to a smaller group of more mature companies. Singapore remains the most attractive location for crypto businesses.

2. Bitcoin and gold correlation at highest level since 2020. The 90-day correlation increased in August after renewed concerns about financial repression made both assets attractive. At the same time, Bitcoin’s correlation with the Nasdaq dropped to its lowest level in a year, while the correlation with the dollar remained negative. According to Bitwise, investors are increasingly holding Bitcoin alongside gold as protection against the devaluation of fiat currency.

3. A group of 21 major financial institutions plans to launch a US dollar stablecoin. The participants include Goldman Sachs, Bank of America, Citi, Deutsche Bank, and UBS. They plan to establish a new company this year and are aiming for a launch in the first half of 2027. When first announced last October, the consortium comprised only ten banks. A euro stablecoin is also planned following the US dollar launch. The coins are intended to be used for purposes including cross-border payments.

4. Hardware wallet manufacturer Trezor’s data breach proves much larger than initially thought. Last month, Trezor reported that nearly 12,000 customers’ data had leaked via its shipping partner ShipMonk. It has now emerged that a further 67,000 US customers were affected. The leaked data included names, email addresses, phone numbers, and home addresses. Notably, Trezor repeatedly received confirmation from ShipMonk that old order data had been deleted. Trezor’s own wallets and systems were not affected. Stay vigilant for targeted phishing attempts in the coming period.

Satoshi Radio: In the latest episode of Satoshi Radio, the focus is on the relocation of part of the Dutch gold reserves from the US to London. The operation unintentionally comes across as an advertisement for bitcoin. The hosts also take you on a tour through the trenches of the crypto world. Speculators hunting for memecoins and on-chain stocks are becoming more active again. The episode closes with an extensive market update: is the bear market over?

This article is for informational purposes only and does not constitute a marketing communication or recommendation. None of the content herein should be considered as investment advice or a substitute for it. Bitvavo makes no guarantees regarding the accuracy or completeness of the provided information. Investments involve risks. There is a possibility of losing your entire invested capital.