As the final quarter of 2025 begins, investors are entering a historically favorable period for crypto markets, particularly bitcoin. which has generated an average fourth quarter return of 79% since 2013.
According to a new report from CoinDesk Indices, several factors could contribute to this trend repeating, including monetary easing, growing adoption by institutions, and new regulatory momentum in the United States.
The backdrop is changing rapidly. The Federal Reserve’s latest rate cut sent interest rates to their lowest level in nearly three years, paving the way for a broader sense of risk appetite. Institutions Reacted Aggressively in Q3: US Places Bitcoin and Ether ETFs have seen combined inflows of over $18 billion, while public companies now hold over 5% of the total Bitcoin supply.
Altcoins have also made inroads, with over 50 listed companies now holding non-BTC tokens on their balance sheets, 40 of which joined in the last quarter alone.
Bitcoin finished the third quarter up 8%, closing at $114,000, largely driven by the adoption of cash flow by public companies. With expectations of further rate cuts and growing interest in bitcoin as a hedge against currency depreciation, CoinDesk Indices expects the asset’s momentum to continue through the end of the year.
But this time, it’s bitcoin that shares the spotlight. Ethereum surged 66.7% in the third quarter, hitting a new all-time high near $5,000. The move was driven by cash accumulation and ETF flows, but future gains could depend on the Fusaka upgrade in November, which aims to improve the network’s scalability and efficiency. If successful, this could strengthen Ethereum’s role as the foundation of on-chain financial activity, particularly in “low-risk” DeFi.
Solana posted a quarterly gain of 35%, supported by large-scale corporate purchases and record ecosystem revenues. With the launch of new exchange-traded products and the Alpenglow upgrade underway, Solana is positioning itself as the high-performance layer for decentralized applications, a narrative that resonates with institutions seeking throughput and profitability.
XRP, meanwhile, has made a nearly 37% gain since the start of the year, fueled by legal clarity after the Securities and Exchange Commission (SEC) and Ripple withdrew their appeals in their long-running case. Investors are closely watching the global expansion of Ripple’s RLUSD stablecoin. The rapid growth of the stablecoin could attract more DeFi protocols to the XRP Ledger, boosting the utility of XRP.
rose 41.1% in the third quarter, outperforming many of its peers. Although 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 spot ETF could mark a turning point for institutional adoption.
The broader trend is also evident in index performance. The CoinDesk 20 Index, which tracks the 20 most liquid and tradable digital assets, gained more than 30% in the third quarter, outpacing bitcoin. The CoinDesk 80 and CoinDesk 100, which capture mid- and small-cap assets, also saw strong returns, reflecting growing interest across the entire market cap spectrum.
In the future, the approval of generic listing standards for crypto ETFs and the emergence of multi-asset and staking-based ETPs could further accelerate capital flows. For traders, the fourth quarter presents a unique mix: a favorable macroeconomic environment, increased institutional engagement, and renewed interest in altcoins.
