Bitcoin remained unchanged on Wednesday amid a lack of clear signals for the cryptocurrency market, yet it is showing quarterly growth driven by hopes for a softening of US regulatory policy.
The world's largest cryptocurrency stabilized after early-week losses as markets assessed the recent pause in the rise of Treasury yields and the absence of signs of de-escalation in the US-Iran conflict.
Bitcoin Up 42% in Q3 Amid Regulatory Optimism
Bitcoin is on track to close the three-month period ending September 30 with a 42% gain—its best quarterly performance since the fourth quarter of 2024.
The world's largest cryptocurrency was bolstered primarily by growing optimism regarding US regulatory approval; actions taken by the Securities and Exchange Commission (SEC) allowed markets to largely overlook the failure of the Clarity Act.
Heightened concerns regarding the state of US public finances, driven by the rapid rise in Treasury yields, also triggered an influx of capital into alternative assets—gold and Bitcoin—thereby supporting crypto markets.
Bitcoin received additional support from MicroStrategy Inc. (NASDAQ: MSTR)—the largest corporate holder of the cryptocurrency—which resumed buying during the quarter.
Markets Weigh Rising Yields and Iran Tensions
However, the rapid rise in bond yields earlier in September knocked Bitcoin off its eight-month highs—particularly after the Federal Reserve raised interest rates and signaled a hawkish monetary policy stance.
Although the yield rally was somewhat tempered on Tuesday by weak economic data and "dovish" comments, yields remain near multi-year highs. Notably, the yield on the benchmark 10-year bond is holding above 5.2%—close to a 19-year peak.
The rise in yields is driven primarily by bets on further Fed rate hikes: traders expect persistent US inflation to force the regulator to maintain a hawkish stance.
Uncertainty surrounding the US-Iran conflict is exerting additional pressure on crypto markets at the end of the quarter. Earlier this week, US President Donald Trump denied reports that he had offered Iran concessions in exchange for a peace agreement, while simultaneously rejecting peace initiatives from the country.
Crypto Market Today: Altcoins Outperform Bitcoin in Q3
Most cryptocurrencies declined on Wednesday; however, their performance for the third quarter significantly outpaces that of Bitcoin.
Ether, the world's second-largest cryptocurrency, fell 1.5% to $2,665.88, having posted a gain of nearly 70% in Q3.
XRP dropped 0.4% but rose 44.2% in Q3, while BNB is on track to gain 39%. Cardano is poised to rise nearly 70%, while Chainlink has emerged as the top-performing altcoin of the quarter, with projected gains of around 100%.
LINK has gained momentum driven by growing expectations that favorable US regulations will spur the adoption of decentralized finance (DeFi)—a scenario that benefits the cryptocurrency as the native token of the Chainlink decentralized oracle network.
Among memecoins, Dogecoin fell 1.2% on Wednesday but is trading up 30% for the third quarter.
However, most cryptocurrencies remain in the red year-to-date, as interest in the sector wanes while traders shift en masse toward artificial intelligence-related assets.