Bitcoin posted its strongest August rise since 2017, gaining more than 24 percent to trade around $78,000, despite renewed U.S.-Iran military clashes and a hawkish turn by the Federal Reserve. Brent crude climbed to around $91 a barrel after strikes and retaliation, stoking inflation worries. Analysts said oil supply disruption risks remain limited. Market data showed spot trading volumes stayed weak, though activity stabilized and some exchanges saw modest month-on-month increases.

Odds of a U.S. Federal Reserve rate increase in September overtook expectations for a hold, with Polymarket pricing a 0.25 percentage point hike at 55.5 percent. Treasury yields rose and broader markets reacted, while bitcoin held the $78,000 range and ether stayed above $2,470. Investors are watching U.S. inflation and jobs signals ahead of the Aug. CPI report due Sept. 11 and the Sept. FOMC meeting.