Bitcoin Drops 7% in August While Ethereum Surges 17%, But Traders Eye a September Rebound

• Bitcoin’s Rocky August and Ethereum’s Rally
• September Blues or a Prelude to "Uptober"?
• Fed Watch: Will Powell Spark a Crypto Rally?
• Crypto Millionaires Splurge on Luxury Goods
• FAQs: Bitcoin, Ethereum, and the September Shift

August was a mixed bag for crypto investors—Bitcoin slid 7%, while ethereum rallied 17%. Despite Bitcoin’s recent underperformance, traders are betting on a short-term rebound in September, especially if market volatility persists and hype around new crypto stocks fades. Historical data suggests October could be Bitcoin’s comeback month, dubbed "Uptober" by the crypto community. Meanwhile, Ethereum’s dominance may cool off as Bitcoin regains traction. Luxury spending by crypto millionaires is also on the rise, with private jets, yachts, and high-end hotels now accepting Bitcoin payments. Here’s the full breakdown.

Bitcoin’s Rocky August and Ethereum’s Rally

Bitcoin’s August performance left much to be desired, with a 7% drop, while Ethereum stole the spotlight with a 17% surge. Over the past two months, Bitcoin barely eked out a 1% gain, while Ethereum skyrocketed 74%, according to TradingView data. This divergence has chipped away at Bitcoin’s market dominance, which fell over 5% in a month. But don’t count Bitcoin out just yet—some traders, like Matthew Sigel of VanEck, argue that a September rebound is likely if retail interest shifts back to established assets. "New crypto stocks need constant buyers to sustain their prices," Sigel notes. "If retail appetite wanes, Bitcoin could outperform."

September Blues or a Prelude to "Uptober"?

Historically, September hasn’t been kind to Bitcoin. Since 2013, the asset has averaged a 3.7% decline for the month, with a median drop of 4.3% (CoinGlass data). While it’s managed green Septembers in the last two years, traders remain cautious. On the flip side, October has been Bitcoin’s time to shine—gaining in all but two years since 2013, with average returns of 21%. "Bitcoin might wobble early September, but ETH/BTC could hit local tops before momentum reverses," predicts Satraj Bambra, CEO of Rails, a hybrid crypto exchange. The ETH/BTC ratio, which tracks Ethereum’s performance against Bitcoin, often signals shifts in dominance. Bambra adds, "A cooling ETH/BTC ratio means bitcoin could reclaim its throne by late September."

Fed Watch: Will Powell Spark a Crypto Rally?

All eyes are on the Federal Reserve’s September 16–17 policy meeting. Recent hints from Chair Jerome Powell about potential rate cuts have traders buzzing. Bitcoin thrives in liquidity-friendly environments, and a dovish Fed could give it a boost. Despite vulnerability to sell-offs, Bitcoin’s price floor is bolstered by ETF inflows and long-term holder accumulation. The asset hit a record high near $125,000 on August 13, proving its resilience.

Crypto Millionaires Splurge on Luxury Goods

Bitcoin’s bull run is reshaping luxury spending. Private jet operators like FXAIR (owned by Flexjet) now accept Bitcoin, citing demand from younger, crypto-rich travelers. "Time is the ultimate luxury," says FXAIR’s Kenn Ricci, noting bookings for larger jets and longer flights. Virgin Voyages sells its $120,000 annual cruise pass in crypto, while SeaDream Yacht Club and boutique hotels like The Pavilions accept Bitcoin, Ethereum, and even Dogecoin. McKinsey estimates crypto millionaires aged 30–40 spent $28 billion on travel in 2023, a figure set to double by 2028.

FAQs: Bitcoin, Ethereum, and the September Shift

Why did Bitcoin drop in August?

Bitcoin fell 7% in August due to waning retail interest and competition from new crypto stocks. Ethereum, meanwhile, surged 17% as traders rotated into altcoins.

What’s the "Uptober" trend?

Since 2013, Bitcoin has rallied in October 80% of the time, averaging 21% gains. Traders dub it "Uptober" for this reason.

How does the Fed impact crypto?

Bitcoin benefits from loose monetary policy. Powell’s hint at rate cuts could fuel a September-October rally.

Where can I spend Bitcoin luxuries?

FXAIR (private jets), Virgin Voyages (cruises), and SeaDream Yacht Club now accept crypto, catering to crypto millionaires.