Major asset classes outperformed Bitcoin in Q3

Bitcoin finished the third quarter with a modest price increase of 0.8%; This increase was overshadowed by gold’s significant rise of 13.8% due to concerns about the economy and global tensions.

As global uncertainties emerge, investors are turning to safe havens for stability, with Bitcoin (BTC) lagging behind with a modest 0.8% price increase in the third quarter of 2024, according to data compiled by crypto price aggregator CoinGecko. By comparison, major assets such as gold rose 13.8% amid fears of an economic slowdown in the US and rising tensions in the Middle East.

Bitcoin price performance compared to traditional assets in Q3 2024 | Source: CoinGecko

Moreover, even the Japanese Yen showed a strong performance, rising by 12.0% following the Central Bank’s interest rate cuts as well as the Bank of Japan’s surprise interest rate increase. In comparison, Bitcoin only outperformed crude oil and the US Dollar Index; all major fiat currencies gained value against the dollar; This reflects changing market dynamics between weakening demand and fears of monetary policy adjustments.

Bitcoin’s modest gains lead to a decline in trading volumes

While Bitcoin posted modest gains, the top ten centralized crypto exchanges reported a combined spot trading volume of $3.05 trillion; This reflects a quarter-on-quarter decline of approximately 15%. Despite this setback, Binance retained its status as the largest CEX, but its market share fell below 40% for the first time since January 2022, ending September at 38%.

Crypto.com achieved significant growth of 160.8% in trading volume and 14.4% market share, jumping from ninth place in the second quarter to become the second largest CEX. Meanwhile, OKX and Gate.io were left in a difficult situation; each experienced declines in trading volume exceeding 30%. US-based crypto exchange Coinbase has also faced difficulties, with a 23.8% drop in trading volumes, dropping it from sixth to tenth among top exchanges.

Despite the market’s modest gains in the third quarter, analysts at CoinGecko noted that Bitcoin increased its dominance by 2.7% quarterly to 53.6%, adding that “the last time BTC reached such dominance was in April 2021.” ”