As the final quarter of 2025 progresses, investors are entering a historically favorable period for cryptocurrency markets, particularly bitcoin. which has obtained an average return of 79% in the fourth quarter since 2013.
According to a new report from CoinDesk Indices, several factors may help that trend repeat itself, including monetary easing, growing institutional adoption, and a new regulatory push in the US.
The backdrop is changing rapidly. The Federal Reserve’s latest rate cut pushed interest rates to their lowest level in nearly three years, setting the stage for broader risk-on sentiment. Institutions responded aggressively in Q3: bitcoin and ether spot in US ETFs recorded combined inflows of more than $18 billion, while public companies now hold more than 5% of the total bitcoin supply.
Altcoins have also made progress, with more than 50 listed companies now holding non-BTC tokens on their balance sheets, 40 of which joined just last quarter.
Bitcoin ended the third quarter up 8%, closing at $114,000, driven largely by treasury adoption among public companies. With expectations of further rate cuts and growing interest in bitcoin as a hedge against currency debasement, CoinDesk Indices expects the asset’s momentum to continue through the end of the year.
But this time, bitcoin shares the spotlight. Ethereum rose 66.7% in the third quarter, reaching a new all-time high near $5,000. That move was driven by treasury accumulation and ETF flows, but future gains may depend on Fusaka’s upgrade in November, which aims to improve network scalability and efficiency. If successful, it could bolster Ethereum’s role as the foundation of on-chain financial activity, especially in “low-risk” DeFi.
solarium posted a 35% quarterly profit, supported by large-scale corporate purchases and record ecosystem revenues. With the launch of new publicly traded products and the Alpenglow upgrade in the works, Solana is positioning itself as the high-performance layer for decentralized applications, a narrative that resonates with institutions seeking performance and cost efficiency.
Meanwhile, Investors are watching closely as Ripple’s RLUSD stablecoin expands globally. The stablecoin’s rapid growth could attract more DeFi protocols to the XRP Ledger, deepening XRP’s utility.
rose 41.1% in the third quarter, outperforming several of its peers. While on-chain activity remains relatively modest, steady growth in stablecoin usage, derivatives volume, and DEX activity has created a more stable foundation for potential expansion. A pending decision on an ADA ETF could mark a turning point for institutional adoption.
The broader trend is also evident in the index’s performance. The CoinDesk 20 index, which tracks the 20 most liquid and tradable digital assets, gained more than 30% in the third quarter, outperforming bitcoin. CoinDesk 80 and CoinDesk 100, which capture mid- and small-cap assets, also posted strong returns, reflecting growing interest across the market cap spectrum.
Looking ahead, the approval of generic listing standards for crypto ETFs and the emergence of multi-asset and staking-based ETPs could further accelerate inflows. For traders, the fourth quarter presents a unique combination: a favorable macro environment, deepening institutional commitment, and renewed interest in altcoins.
