Bitcoin on Pace for Best Quarter in Nearly Two Years

Dow Jones03:10

Despite its recent retracement, bitcoin is on pace for its best quarterly performance since the fourth quarter of 2024.

The largest cryptocurrency traded around $83,600 Tuesday afternoon after climbing above $86,000 in recent weeks. It is on track to lock in its first positive quarter in a year, having gained more than 40% from July to September. The digital currency has been buoyed by a strong streak of inflows into bitcoin exchange-traded funds, sparking hopes for a sustained bull market.

However, the rally has lost momentum in recent days as surging bond yields weighed on broader market sentiment. Analysts at research firm CryptoQuant warn that a crypto market correction could be looming. They point to profit-taking behaviors by traders and an uptick in tokens being transferred to exchanges-typically a precursor to selling. Furthermore, demand for spot bitcoin has slowed, while activity in speculative futures tied to bitcoin is cooling off.

One potential relief is seasonality. Historically, bitcoin has had its best monthly performance in October, boasting an average gain of 19.1% in the month, according to Dow Jones Market Data.

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