Bitcoin's New Support to Test September Volatility in Equities & Commodities

• Bitcoin's recent price jump from the $60,000s to $80,000 was primarily due to a short squeeze, with some positive inflows into exchange-traded products (ETPs).
• Despite September historically being the weakest month for Bitcoin (down ~4% on average since 2011), this year may see a 'boring September' due to a reset in leveraged markets.
• A year-end rally is anticipated if Bitcoin can sustainably hold above the $80,000 level, which would put the average Bitcoin investor back in profit. Historically, October, November, and December are strong months for cryptocurrencies.
• Rising bond yields, usually a negative for Bitcoin, may actually be supportive due to the 'debasement trade' narrative and Bitcoin's role as an alternative monetary system, with its correlation to gold recently increasing.

The discussion focuses on Bitcoin's recent recovery, attributing it to a short squeeze and ETP inflows. While September is historically weak for Bitcoin, a market reset and potential for sustained prices above $80,000 could lead to a year-end rally, aligning with historically strong Q4 months. Rising bond yields, typically a negative, might even be supportive for Bitcoin due to its original 'alternative monetary system' narrative.