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Bitcoin is surging, and quite a bit actually. Back in July, the most popular cryptocurrency came close to an all-time high of $123,000 mark. In PKR, that is a whopping Rs 34,501,924.53 (that is 3.4 crores!)
Now, with a remarkable 10% increase in the first ten days of August, we are back in the loop. The cryptocurrency market is currently buzzing with momentum, driven by a potent mix of pro-crypto political signals, institutional adoption, and economic catalysts. Are we heading towards a explosive year-end rally?
What’s Driving the August Momentum?
The Bitcoin price surge is gaining traction amid a wave of optimism from Wall Street, the Federal Reserve, and the White House. U.S. President Donald Trump’s recent pro-crypto announcements, including executive orders to integrate crypto into 401(k) plans and curb debanking of crypto firms, have ignited investor enthusiasm.
Trump’s appointment of Stephen Miran, a Bitcoin advocate, as a temporary Federal Reserve governor further signals a dovish stance on interest rates, potentially boosting risk assets like Bitcoin.
Moreover, Nakamoto is accelerating Bitcoin accumulation, joining Michael Saylor’s Strategy, which now holds nearly 3% of Bitcoin’s 21 million total supply (valued at approximately $76 billion) after a recent $2.5 billion purchase.
“[It’s going to be] a big week,” David Bailey, who has advised Trump on bitcoin and now leads a bitcoin treasury company called Nakamoto, posted to X.
Key Catalysts of Bitcoin August Momentum
Cryptocurrency “Crypto Week” in Washington
This week, from July 14-17, 2025, marks “Crypto Week” in the U.S., with the House of Representatives debating pivotal legislation.
The GENIUS Act aims to regulate stablecoins and enhance crypto’s mainstream legitimacy, while the CLARITY Act and Anti-CBDC Surveillance State Act promise clearer regulatory frameworks.
Trump’s support, branding himself the “crypto president,” has fueled optimism that these bills could pass, reshaping the legal landscape for digital assets.
Federal Reserve Signals and CPI Data
The week also brings critical U.S. consumer price index (CPI) data, due Tuesday, August 12, 2025. Economists anticipate a 2.8% annual inflation rate, and a softer reading could solidify the 90% probability of a September rate cut, per the CME Fed Watch tool.
Lower interest rates typically favor risk assets, driving Bitcoin inflows and bullish sentiment, as noted by Reuters and MarketWatch.
Institutional Flow and Sentiment About August Momentum
Spot Bitcoin ETFs have seen a $91.6 million inflow on Wednesday, August 6, 2025, snapping a four-day outflow streak, according to Farside Investors.
BlackRock’s IBIT ETF, with $83 billion in assets under management, now holds over 700,000 BTC, outpacing Strategy by 100,000 coins. Analysts from InvestX highlight bullish technical patterns, such as an ascending wedge, suggesting Bitcoin could target $130,000–$150,000 by year-end, with some predicting a climb to $175,000 if momentum holds.
Risks Remain
Despite the euphoria, volatility looms large. The rally’s resemblance to speculative bubbles raises concerns, with Bitcoin’s price susceptible to sentiment swings, regulatory shifts, and macroeconomic risks. The SEC’s “Project Crypto” initiative, unveiled last week, aims to clarify regulations but has yet to address enforcement details, leaving uncertainty.
Globally, governments remain wary, with some viewing crypto’s rapid growth as a potential threat to financial stability. For the time being, Pakistani crypto enthusiasts can keep a tab on BTC against PKR on our converter here.
