Bitcoin concluded Q3 with a small 0.8% gain, overshadowed by gold’s impressive 13.8% surge, driven by economic concerns and global tensions.
In light of global uncertainties, investors are seeking safe havens for financial stability, leading to Bitcoin (BTC) lagging with a mere 0.8% increase in Q3 2024, as reported by data gathered by crypto price aggregator CoinGecko. In contrast, significant assets like gold rose by 13.8% amidst growing apprehensions over an economic slowdown in the U.S. and rising tensions in the Middle East.
Additionally, the Japanese Yen displayed substantial strength, rising by 12.0% following the Bank of Japan’s unexpected interest rate hike alongside rate cuts from the Federal Reserve. In comparison, Bitcoin only outperformed crude oil and the U.S. Dollar Index, as all major fiat currencies appreciated against the dollar, reflecting changing market dynamics amidst fears of declining demand and monetary policy shifts.
Bitcoin’s slight gains lead to a dip in trading volumes
Although Bitcoin registered modest gains, the top ten centralized crypto exchanges recorded a total spot trading volume of $3.05 trillion, marking a nearly 15% decrease from the previous quarter. Despite this drop, Binance maintained its position as the largest CEX, though its market share fell below 40% for the first time since January 2022, closing September at 38%.
Crypto.com ascended to the position of second-largest CEX, rising from ninth place in Q2, showcasing an extraordinary 160.8% increase in trading volume, which afforded it a 14.4% market share. Conversely, OKX and Gate.io struggled, both experiencing trading volume reductions exceeding 30%. The U.S.-based crypto exchange Coinbase also faced obstacles, witnessing a 23.8% decline in trading volumes, causing a drop from sixth to tenth place among the largest exchanges.
Despite the market’s modest recoveries in Q3, CoinGecko analysts pointed out that Bitcoin improved its dominance to 53.6%, reflecting a 2.7% increase quarter-on-quarter, noting that the “last time BTC reached such dominance was in April 2021.”
