The Crypto Market Stabilizes in Q3 and Offers Significant Growth Opportunities

The third quarter of 2023 was characterized by limited volatility in crypto markets, with prices returning approximately to levels seen at the end of the previous quarter.

However, if we broaden the perspective to the entire year, a notable rise in the market values ​​of cryptocurrencies emerges, marking a marked reversal compared to the prolonged period of falling prices.

Read more about the crypto market and find the latest business news of the day with our companion app Born2Invest available for free for both Android and iOS devices.

Bitcoin, Ethereum, and altcoins

At the end of September, Bitcoin recorded a YTD performance of +63%, while Ethereum hovered around +40%. The total market capitalization, which was slightly above $0.8 trillion at the beginning of the year, rose to over $1.1 trillion by the end of the third quarter, marking a 35% increase.

While Bitcoin continues to dominate teh crypto market as the best asset of the year, the success of many other cryptocurrencies in the quarter is evident.

In particular, attention was focused on Real-world assets (projects that bring assets on-chain such as bonds, raw materials, and real estate investments), on trading bots that can be used via Telegram (such as Unibot), and on SocialFi protocols (including Friendtech ), which seek to combine decentralized finance with the typical functions of social networks.

However, it should be noted that trading volumes on Centralized Exchanges are declining, with the third quarter hitting new lows, down 20% compared to the second quarter. These last three months have therefore alternated periods of stasis with short periods of recovery.

SEC Could Approve Bitcoin ETFs Which Takes a Leap

At the time of writing this report, there is a sudden excitement in the cryptocurrency market. The price of Bitcoin has surpassed $34,000, registering a 25% increase in the last three weeks.

This performance overshadowed the excellent recovery of Ethereum, which grew by around 8% in the same period, with an almost identical increase in the capitalization of alt-coins.

There are several reasons behind Bitcoin’s exceptional performance, including renewed investor confidence in the SEC’s approval of BTC ETFs and recent rumors about the approval of Bitcoin ETFs are generating upward pressure on BTC.

In the third quarter, the US market saw many requests for spot ETFs and futures on Bitcoin and Ethereum, demonstrating the interest of institutions in the cryptocurrency sector.

ETFs (Exchange Traded Funds) are financial instruments accessible to everyone, from small investors to large institutions, eliminating barriers such as security and custody and using cryptocurrencies as an underlying asset. BlackRock, Fidelity and other financial giants have filed with the SEC, opening up the possibility of a market that could be worth billions and positively influence the price of Bitcoin.

There are also calls for Ethereum ETFs, which could lead to significant growth in Ethereum after a period of being overtaken by Bitcoin.

Generally, it is observed that Bitcoin starts growth, followed by Ethereum, and then the other cryptocurrencies and tokens enter a bull market with much higher percentage increases, given the size of the projects.

Market trend for Bitcoin

The month of July saw Bitcoin at $30,500 and a total crypto market capitalization slightly above $1.2 trillion.

Since the second half of August, Bitcoin has fallen to around $26,000, remaining in a tight range before closing the quarter at $27,000. This trend was reflected across the market as a whole, with total capitalization dropping from $1.25 trillion at the start of July to $1.1 trillion at the end of the quarter.

Bitcoin’s dominance, i.e. the percentage of its capitalization compared to the total market, fell from 49.5% to 48.5%, with a percentage point less in favor of Ripple and some alt-coins. However, Bitcoin’s recent performance has reversed this trend, bringing its dominance above 53%.

In contrast, Ethereum experienced a negative quarter, falling from its initial value of over $1,900 to close at less than $1,700, a loss of 11%.

Final considerations on the crypto market

Although the third quarter was not the most significant in terms of crypto market performance, it was characterized by important regulatory events, such as Ripple’s victory in court and discussions on the approval of Bitcoin and Ethereum ETFs. These events have set the stage for Bitcoin’s recent rally, with expectations of an imminent announcement from the SEC.

The arrival of ETFs would represent a significant step towards the adoption of cryptocurrencies by financial institutions.

The goal in the coming months will be to attract institutional capital to take the cryptocurrency sector to the next level. Furthermore, the adoption of stablecoins like PYUSD by financial giants like PayPal could lead to greater adoption of cryptocurrencies, even among common users.

With Bitcoin dominance returning to its highest levels in two and a half years, a possible recovery in alt-coins is expected, which is why several investors are reconsidering their portfolio strategies.

__

(Featured image by Art Rachen via Unsplash)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in  Crowdfunding buzz. A third-party contributor translated and adapted the articles from the originals. In case of discrepancy, the originals will prevail.

Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us