Bitcoin and other cryptocurrencies rebounded in August after spending part of the summer overshadowed by surging artificial-intelligence stocks and prediction markets. Bitcoin recorded its biggest rally since 2023, driven in part by a short-covering frenzy after U.S. Treasury Secretary Scott Bessent announced on Aug. 19 that the government would at least double its buyback of long-dated debt. The announcement also prompted negative bets on the dollar. On the same summer day, President Trump urged Congress to pass a "fair version" of the digital regulatory act. Strong inflows into crypto exchange-traded funds during August added to a broader return of risk-on sentiment.