Bitcoin traded lower on Wednesday as cryptocurrency markets lacked fresh catalysts, but the world’s largest cryptocurrency remained on track for its strongest quarterly performance since late 2024, supported by growing optimism over the regulatory outlook in the US.
Bitcoin fell 0.59 percent to $83,136 by 8:26 GMT, after giving up some ground earlier in the week.
Despite the recent weakness, it was set to gain around 42 percent in the three months to September 30, marking its strongest quarterly advance since the fourth quarter of 2024.
Bitcoin rises on hopes of regulatory progress
Bitcoin’s rally was supported largely by expectations of greater regulatory clarity in the US. Recent moves by the Securities and Exchange Commission helped sustain market optimism even after the failure of the Clarity Act.
Bitcoin also benefited from heightened concerns over U.S. fiscal health, with elevated Treasury yields encouraging some flows into alternative assets such as gold and cryptocurrencies.
Corporate demand provided another source of support during the quarter, with Strategy Inc., one of the largest corporate holders of Bitcoin, resuming purchases of the cryptocurrency.
Rising bond yields continue to weigh on Bitcoin
However, rising bond yields continued to weigh on Bitcoin and pulled it back from eight-month highs reached earlier in September. The Federal Reserve’s interest rate hike and hawkish outlook added to pressure on risk-sensitive assets.
While weaker economic data and dovish commentary on Tuesday helped temper the rise in yields, they remained near multi-year highs. The 10-year U.S. Treasury yield stayed above 5.2 percent, close to a 19-year peak, as markets continued to price in the possibility of further Fed rate hikes amid expectations that persistent US inflation could keep monetary policy restrictive.
Geopolitical uncertainty also added to pressure on cryptocurrency markets heading into quarter-end. Uncertainty surrounding the U.S.-Iran conflict remained elevated after U.S. President Donald Trump denied reports that he had offered Iran concessions in exchange for a peace deal, following his rejection of an Iranian peace proposal.
Altcoins post stronger quarterly gains
Broader cryptocurrency prices also declined on Wednesday, although several major tokens were on track to outperform Bitcoin during the third quarter.
Ether, the world’s second-largest cryptocurrency, fell 1.47 percent to $2,669.73 but remained up nearly 70 percent for the quarter.
XRP declined 0.32 percent and was up 44.2 percent in the third quarter, while BNB was set to gain around 39 percent.
Cardano was on track for a quarterly increase of nearly 70 percent, while Chainlink emerged as the strongest-performing major altcoin, with gains of almost 100 percent.
Chainlink benefited from growing expectations that a more supportive U.S. regulatory environment could encourage wider adoption of decentralized finance. The cryptocurrency is the native token of the Chainlink decentralized oracle network.
Among memecoins, Dogecoin fell 1.56 percent on Wednesday but remained around 30 percent higher for the third quarter.
Despite the strong quarterly gains across several major cryptocurrencies, most digital assets remained lower for the year as a whole. Investor appetite for the sector has been constrained by a broader shift towards artificial intelligence-related investments.
