Bitcoin Rallies 44% in Q3; Ethereum Surges 71%

Bitcoin rose 44% in the third quarter, its second-best quarterly performance, while Ethereum gained 71% from July through September. The rallies unfolded across global trading venues after a period of earlier weakness.

Traders and institutional investors cited expectations of possible U.S. approvals for spot bitcoin exchange-traded products and interest in similar vehicles for Ethereum as factors driving demand. Softer inflation readings and central-bank comments pointing to a slower pace of rate increases supported risk assets more broadly.

Trading volumes and derivatives activity increased on many crypto platforms during the quarter. On-chain data showed larger net transfers to exchanges and to custodial platforms that serve institutional clients, indicating higher market participation.

Market participants reported a rotation into Ethereum as investors evaluated exposure to the network’s use cases while viewing Bitcoin as a store of value. That rotation contributed to Ether’s stronger performance relative to most large-cap tokens.

Filings by asset managers and ongoing reviews by securities regulators influenced the timing and size of inflows. Market participants noted that any formal approvals or clearer regulatory guidance would likely affect liquidity and price formation in coming weeks.

Volatility remained elevated through the quarter, with wide daily price swings and rapid adjustments in futures markets showing sensitivity to macroeconomic announcements and regulatory headlines. Investors monitored on-chain indicators, exchange flows and custody inflows for signs of sustained capital commitment.

The third quarter covers July through September, a period when liquidity patterns can affect crypto markets. Bitcoin’s and Ethereum’s gains followed a stretch of consolidation and coincided with increased interest from larger investors and asset managers compared with earlier in the year.