Traditional assets, namely Gold and the Japanese Yen, outperformed Bitcoin in the third quarter of 2024. According to a report by Coingecko, Bitcoin (BTC) saw a modest price increase of just 0.8%, whereas Gold emerged as the biggest winner, surging by 13.8%.
The Japanese Yen also had a strong quarter, appreciating by 12.0%. Coingecko highlighted that this rise followed an unexpected interest rate hike by the Bank of Japan in August, while the US Federal Reserve subsequently lowered rates.
Despite Bitcoin’s relative decline compared to Gold and the Japanese Yen, it still performed better than crude oil and the US Dollar Index (DXY). These assets struggled with weaker oil demand and concerns about the Federal Reserve’s rate cuts.
Gold typically thrives during periods of rising prices and economic instability. Investors often turn to gold as a hedge against inflation and currency fluctuations.
Bitcoin, however, experienced significant price volatility during this period, influenced by government regulations and market shifts. This volatility made Bitcoin less appealing to cautious investors, who opted for safer assets like Gold and the Yen.
Fall in crypto market
Coingecko reported that in the third quarter (Q3) of 2024, the total value of the cryptocurrency market decreased by 1.0%, losing $95.8 billion, and closing the quarter at $2.33 trillion.
Earlier in the quarter, on July 22, the market peaked at $2.61 trillion. However, it sharply declined on August 6 due to concerns about the global economy. During this period, the US Federal Reserve maintained its interest rates, while the Bank of Japan increased theirs.
Subsequently, the crypto market fluctuated between $2.00 trillion and $2.20 trillion before rebounding slightly to its final value of $2.33 trillion. This recovery was supported by a significant 0.5% interest rate cut in the US and announcements of economic stimulus in China.
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In the fall, Bitcoin (BTC) gained dominance, comprising a larger share of the total crypto market. Its market share rose to 53.6%, an increase of 2.7% from the previous quarter.
While Bitcoin’s price climbed a modest 0.8%, other cryptocurrencies experienced greater losses. This shift helped Bitcoin capture a more substantial portion of the market. Coingecko noted that Bitcoin last held such a significant share in April 2021.
Among the top seven cryptocurrencies, Ethereum experienced the steepest decline in market share. Its dominance dropped by 3.6% in Q3, leaving it with 13.4% of the market.
This decrease occurred despite Ethereum launching new investment products, Ethereum ETFs (Exchange-Traded Funds), in July, which were anticipated to boost interest.