Bitaigen Research 
Grayscale believes that the third quarter of 2025 will be a “special” season dominated by altcoins, with BTC underperforming while increased trading volume on centralized exchanges (CEXs) fuels the market. The smart‑contract sector benefits from U.S. stable‑coin legislation, resulting in an overall positive return.
According to asset‑management firm Grayscale, several segments of the crypto market benefited from major policy shifts in the United States during the third quarter of 2025, but Bitcoin (BTC) lagged behind Ethereum (ETH) and other tokens.
In a report released on Thursday, Grayscale noted that, although crypto‑related markets—including Bitcoin (BTC), Ethereum (ETH), AI projects, and smart‑contract platforms—delivered positive returns in the quarter, the overall picture resembled a “altcoin season.” The report stated that the smart‑contract segment gained from stable‑coin legislation—likely referring to the GENIUS Act passed in July in the United States—while AI, traditional currency tokens, and BTC performed relatively weaker.
“Bitcoin underperformed other market segments; the return profile resembles a crypto ‘altcoin season,’ which differs from previous periods when Bitcoin’s dominance simply declined,” the Grayscale report said.
*Source: Grayscale*
Other highlights from the report include:
- The balance‑sheet size of various token assets held by crypto treasury funds expanded dramatically.
- Stablecoins saw increased adoption in the United States.
- Trading volume on centralized exchanges (CEXs) rose sharply.
Grayscale speculates that, beyond the GENIUS Act, other U.S. policies under consideration—such as the Digital Asset Market Structure Act pending in Congress—could continue to buoy the crypto market into the fourth quarter of 2025.
Although BTC price surged dramatically in the third quarter, breaking the historic high of $120,000 in August, it still lagged behind other assets. Research indicates that Bitcoin and altcoins reached new all‑time highs at a slower pace than gold and traditional equities, partly because stablecoins are moving out of exchanges.
We have distilled Grayscale’s latest report, highlighting that Q3 2025 displayed “altcoin‑season” characteristics: Bitcoin lagged, CEX trading volume lifted the market, and the smart‑contract sector benefited from U.S. stable‑coin legislation. This article will deep‑dive into the policy and trading‑structure drivers behind each segment’s performance to help readers understand future trends.
Optimism Around Crypto Exchange‑Traded Funds
As one of the leading asset‑management firms offering cryptocurrency exchange‑traded funds (ETFs), Grayscale has long been a pioneer of digital‑asset investment products.
- The SEC recently approved new listing standards for crypto ETFs, which are expected to help propel the market in the fourth quarter.
- The regulator has also approved Grayscale’s multi‑asset crypto ETF, providing exposure to BTC, ETH, Ripple (XRP), Solana (SOL) and Cardano (ADA).
These points summarize why Grayscale labels the third quarter of 2025 as a “special” altcoin season, with Bitcoin (BTC) lagging and centralized exchanges driving the market. For more information on Bitcoin’s ebb, CEX‑driven altcoin rallies, and related analysis, please follow additional articles on Bitaigen (比特根).
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Related Reading
- Will Altcoins Return? Bitcoin Season Still Dominates 2026
- Bitcoin Price Forecast 2030: Will BTC Hit $500,000?
- Top Bitcoin Holders in 2025 & Market Impact
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⚠️ Risk Disclaimer: Crypto prices are highly volatile. This is not investment advice.
