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The August 26 to September 1 period was primarily marked by a remarkably solid consolidation of the previous week’s spectacular move. After briefly climbing back above $80,000, bitcoin ended the period around $77,800, compared with approximately $78,700 on August 26. The decline was therefore limited to just over 1%, despite a gain of approximately 24% for August as a whole.
This ability to preserve most of the recent gains is an encouraging signal. Following such a rapid advance, considerably more significant profit-taking would have been entirely normal. The fact that bitcoin continues to trade near $80,000 instead suggests that demand remains present and that the market is now attempting to build a new base at substantially higher levels.
Ethereum followed a similar trajectory. Its price moved from approximately $2,470 to $2,445 after unsuccessfully attempting to establish itself sustainably above $2,500. Following gains of nearly 25% for bitcoin and 30% for Ethereum during the previous week, this pause appears more like a healthy consolidation than a genuine trend reversal.
The macroeconomic environment nevertheless became somewhat less accommodative in the short term. The U.S. Personal Consumption Expenditures Price Index, the Federal Reserve’s preferred inflation measure, increased by 0.2% in July. Its annual rate remained at 3.7%, well above the central bank’s 2% target.
At the same time, the second estimate of U.S. gross domestic product confirmed relatively modest annualized growth of 1.5% in the second quarter. Household consumption was nevertheless revised upward from 3.2% to 3.4%. This resilience reduces the likelihood of rapid monetary easing, but it also makes a pronounced economic deterioration less likely. For the markets, moderate growth accompanied by a gradual decline in inflation would remain a favourable scenario, even if the path is likely to be uneven.
Federal Reserve Chair Kevin Warsh’s speech at Jackson Hole on August 28 intensified this tension. He reaffirmed that the 2% inflation target remained firm and indicated that the central bank would still have work to do if it did not see convincing progress toward that objective. Investors interpreted these remarks as leaving the door open to another interest-rate increase.
The implied probability of a September rate increase consequently rose from approximately 40% following the inflation data to nearly 66% at the beginning of September. The yield on 10-year U.S. Treasuries approached 4.75%, its highest level since January 2025.
Bitcoin’s relatively modest reaction to this significant shift in monetary expectations nevertheless deserves attention. A few months ago, such an increase in bond yields and rate-hike probabilities could easily have triggered a much sharper correction. This time, bitcoin absorbed the shock while remaining near its recent highs, demonstrating a more resilient market structure.
The rebound in oil prices added another source of pressure. Brent crude surpassed $90 per barrel following another escalation between the United States and Iran. A sustained increase in energy prices would further complicate the fight against inflation and could encourage the Federal Reserve to maintain restrictive policy for longer. So far, however, the cryptocurrency market has responded well to this renewed geopolitical uncertainty.
These developments also provide a better understanding of the potential impact of the bond buybacks announced by the U.S. Treasury. These operations can improve bond-market liquidity and temporarily reduce the amount of long-dated debt investors must absorb. They cannot neutralize a central bank that is more concerned about inflation, but they may nevertheless help stabilize the market when the expanded operations begin in September.
Despite this environment, institutional flows remained highly encouraging. Between August 26 and August 31, spot Bitcoin ETFs recorded net inflows of approximately $489 million. The positive sessions on August 26, 27 and 31 largely offset the nearly $202 million in outflows recorded on August 28 following the Jackson Hole speech.
The rapid return of inflows after this single negative session represents an especially positive development. It shows that institutional investors used the temporary weakness to increase their exposure rather than withdraw from the market. Demand from ETFs therefore appears to be becoming more consistent and less dependent on daily price movements.
Ethereum ETFs performed even better, attracting approximately $608 million in net inflows during the four available trading sessions. This demand is remarkable considering the relative stability of ETH’s price. It suggests that institutional purchases were absorbed by profit-taking rather than by a broad deterioration in investor interest in Ethereum.
This situation can be interpreted constructively. If profit-taking subsides while institutional inflows continue, some of this demand could eventually be reflected more directly in the price. Ethereum therefore has fundamental support that appears stronger than its currently stable performance might suggest.
These flows are probably one of the main reasons the correction remained limited. Some investors who purchased before or during the previous rally used the return toward $80,000 to sell, but ETF demand absorbed a large portion of this supply. The transfer of coins to investors who generally have longer time horizons could also gradually reduce the amount of supply available on the market.
From a technical perspective, the region between $77,000 and $78,000 remains the first support area to monitor for bitcoin. Holding this region would strengthen the possibility of another attempt above $80,000, followed by the recent high of $81,200. A convincing break above this resistance would open the way toward $85,000. A sustained loss of support could bring the price back toward $75,000 and then the $72,000-to-$74,000 region, although even such a decline would remain compatible with a normal consolidation of the August rally.
For Ethereum, $2,400 represents the first important support level. Holding this region would allow ETH to make another attempt at establishing itself above $2,500 and then breaking through the $2,600 area. Strong ETF flows provide interesting fundamental support and increase the likelihood that Ethereum will participate fully in the market’s next upward move. A decline below $2,400 would nevertheless shift attention back toward $2,300.
Strategy also resumed its bitcoin purchases following a pause of just over two months. The company acquired 4,603 BTC for approximately $370 million at an average price of $80,318. It now holds 845,050 BTC acquired at an average cost of approximately $75,412. The return of this major buyer represents a particularly interesting vote of confidence, as the company is willing to resume accumulating near $80,000 rather than wait for a more substantial correction.
Among other assets, Solana ended August with a monthly gain of approximately 46%, its first positive month in ten months. Solana ETFs attracted nearly $78 million between August 26 and August 31, while holders approved an acceleration in the network’s declining inflation schedule. The annual disinflation rate will increase from 15% to 30%, which is expected to eliminate approximately 18.9 million SOL from projected issuance over the next six years. ZEC, for its part, preserved most of its previous advance and remained in the $800-to-$850 region. The official launch of Grayscale’s ZCSH ETF on NYSE Arca brought the anticipated catalyst to fruition, while voting on the NU7 upgrade continues. These developments improve the fundamental outlook for both assets, although their recent advances still warrant attention to leverage and volatility. The Rivemont Crypto Fund holds both assets in its portfolio and is therefore well positioned to benefit from a potential continuation of their appreciation.
Another interesting trend involves token buybacks by companies in the sector. Crypto businesses have reportedly spent a record amount of approximately $640 million on these operations since the beginning of 2026. Hyperliquid and pump.fun account for most of the total. This strategy seeks to create a more direct connection between a protocol’s revenue and the value of its token, much like the share buybacks conducted by traditional companies.
These buybacks obviously do not guarantee higher prices. Their effectiveness depends on the quality of the revenue, the rate at which new tokens are issued and the protocol’s ability to maintain its activity. They nevertheless reflect a very positive evolution within the industry: investors are now paying greater attention to revenue, financial discipline and how the economic value generated by a network is actually returned to holders of its asset.
In summary, the August 26 to September 1 period allowed the market to digest an extremely rapid advance without experiencing a major correction. Bitcoin and Ethereum declined by approximately 1%, but ETF flows remained strong and several assets preserved most of their August gains.
The market’s reaction to macroeconomic news is probably the most encouraging aspect of the week. Despite persistent inflation, a firmer Federal Reserve, rising bond yields and renewed geopolitical tensions, bitcoin remained near $78,000. This resilience suggests that investors are now more willing to buy pullbacks.
Interest rates remain the primary factor to monitor. Another increase in yields could extend the consolidation, but ETF demand, the return of Strategy’s purchases and improving fundamentals across several networks provide important counterweights. If bitcoin manages to remain above the $75,000-to-$77,000 region despite this environment, its performance would considerably strengthen the case for another advance.
The overall market structure therefore remains constructive. Rather than calling the August rally into question, the past week appears to have allowed the market to consolidate its gains and build a stronger base. If institutional purchases continue and bond-market pressures begin to stabilize, bitcoin could quickly attempt to reclaim $80,000 and then break above its recent high.
The presented information is as of September 1st, 2026, unless otherwise indicated and is provided for information purposes only. The information comes from sources that we believe are reliable, but not guaranteed. This statement does not provide financial, legal or tax advice. Rivemont Investments are not responsible for any errors or omissions in the information or for any loss or damage suffered.
