{"id":53486,"date":"2025-10-17T17:01:53","date_gmt":"2025-10-17T17:01:53","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=53486"},"modified":"2025-10-17T17:01:53","modified_gmt":"2025-10-17T17:01:53","slug":"99bitcoins-q3-2025-state-of-crypto-market-report","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=53486","title":{"rendered":"99Bitcoins\u2019 Q3 2025 State of Crypto Market Report"},"content":{"rendered":"
\n

This report is brought to you in partnership with WEEX Exchange<\/a>, a platform committed to transparency and innovation in crypto trading. Together, we aim to make crypto more accessible and understandable for everyone.<\/em><\/p>\n

In Q3 2025, the crypto market grew by 23%, following a 22% rise in Q2. This steady growth came in a quarter that has historically been more volatile than Q1 and Q4. In comparison, global equity markets reached $127.71 trillion in the first half (H1) of 2025, showing only a small increase of 0.4% from the second half (H2) of 2024, and a moderate 6.24% gain from H1 2024.<\/p>\n

The crypto market also outperformed private equity and Gold. Over the past six months, Gold returned around 22%, while crypto gained more than 45%.<\/p>\n

\"Crypto<\/p>\n

99Bitcoins found that interest in crypto and Bitcoin has dropped compared to the peak during last year\u2019s U.S. Presidential election. While interest is still strong, it hasn\u2019t returned to those levels. In fact, this quarter, people on X talked more about altcoins than Bitcoin. However, Google searches for \u201cWeb3\u201d were close to record highs, showing that investors were actively looking for early opportunities.<\/p>\n

\"Interest
Source: Google Trends<\/figcaption><\/figure>\n

Interestingly, in August, SEC filings reached an all-time high of 8,110 blockchain mentions, 3620 of which were about Bitcoin. This means more firms are holding, trading, or building products tied to Bitcoin and blockchain. The SEC, at the same time, is paying closer attention and pushing companies to be transparent about any crypto exposure.<\/p>\n

Crypto Market Report Q3: Summary<\/h3>\n

Like the last quarter, institutional adoption continued to gain traction, while retail investor activity was relatively subdued. Most of the money flowed into the top 20 crypto assets, and the talk of an expected \u2018altcoin season\u2019 dominated the market sentiment. According to the Crypto Volatility Index (CVI)<\/a>, the market was most unstable in July and the first week of September. But once the interest rate cut was confirmed, volatility dropped noticeably.<\/p>\n

99Bitcoins found the risk of stagflation was in the air as trading volumes surged. In July, Centralized Exchanges (CEX) handled about $1.7 trillion while Decentralized Exchanges recorded around $1 trillion, with Solana and Hyperliquid driving much of the activity. That gave DEXs a 37% share of the total trading. In August, however, the picture changed; DEX share dropped to 16.5%, with volumes at $369 billion compared to $1.86 trillion on CEXs, the highest since January 2025. In September, trading activity on both CEXs and DEXs remained strong.<\/p>\n

State of the Cryptocurrency Market in Q3 2025<\/h2>\n

From mid-July to mid-August, market sentiment leaned towards greed. But the fear and greed index stayed in neutral territory for most other trading sessions. 99Bitcoins found Bitcoin\u2019s dominance<\/a> was relatively strong in July, at around 60%- 65%. By August, it slipped to roughly 59%, and in September, it settled in the 57%- 60% range.<\/p>\n

Many long-term Bitcoin holders who had made strong profits started moving some of their money into coins outside the top 10. As a result, the total market cap of all cryptos excluding the top 10 climbed to $343 billion, a level not seen in nine months. Liquidity in Q3 was better than in Q2, but still below the highs of 2024\u2019s November and December. Consider this \u2013 daily exchange volume didn\u2019t pass its 23 July peak of $77 billion. On the spot market side, Binance remained the most liquid exchange.<\/p>\n

For the first time in history, Ethereum\u2019s total exchange volume overtook Bitcoin\u2019s. This milestone came on 22 July, when ETH recorded $16.94 billion in volume compared to Bitcoin\u2019s $16.64 billion. Ethereum kept its lead throughout August, the same month it reached a new all-time high. However, by September, BTC regained the top spot, but the gap between the two remained small.<\/p>\n

\"Q3
BTC & ETH Total Exchange Volume | Source: The Block<\/a><\/figcaption><\/figure>\n

This quarter, the stablecoin market grew by about 15%, twice the 7% growth seen in Q2. The total supply hit a record of $230 billion+, and monthly transactions exceeded $4 trillion.\u00a0This growth was fueled by the U.S. passing the GENIUS ACT<\/a> in July 2025. This new law has given the stablecoin market a boost by setting clear rules on how they are issued, what reserves must back them, and how issuers report their holdings.<\/p>\n

VC Funding in Crypto<\/h3>\n

Venture Capital Funding in Q3 rose sharply<\/a>, though it still hasn\u2019t matched the highs of the 2021 bull run. In July alone, crypto projects raised over $6.5 billion, with strong funding continuing through August and September. The comparative decline in VC funding is due to the competition emerging from large financial firms. They are moving deeper into crypto with Stablecoins, tokenization, and DeFi, which is leaving less room for venture capital investors.\u00a0 However, so far this year, crypto companies have secured more than $16 billion and completed over 100 M&A deals. Leo Zhao, Investment Director at MEXC Ventures<\/a>, told 99Bitcoins<\/strong>,<\/p>\n

\n

Today, venture capitalists are naturally much more selective as the focus has shifted from chasing hype cycles to supporting projects with strong fundamentals. While the overall funding volume is below 2021 highs, it\u2019s fair to say that the quality of projects receiving backing today is significantly higher, which will set the foundation for a stronger and more resilient next cycle.<\/p>\n<\/blockquote>\n

About one-third of the money went into DeFi, launchpads and perpetuals, while the rest went into bigger plays like ETFs, real-world assets and IPO-linked companies. Token listings dropped in 2025; in fact, projects that depend on token launches are struggling to raise funds without strong market traction. Meanwhile, the IPO market has picked up again, with 95 companies going public in the U.S. this year and raising $15.6 billion by mid-June. Almost nine big companies are set to launch their IPOs in 2026 and another nine in 2027. This IPO boom has been mainly supported by favorable regulation in the U.S.<\/p>\n

U.S. Policies That Impacted the Broader Crypto Market<\/h3>\n

Over the past nine months, U.S. government policies have largely favored the crypto industry, bringing several regulatory changes that positively impacted the market. Here are the top policies that you should take note of \u2013<\/p>\n

\n\n\n\n\n<\/colgroup>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Date (2025)<\/strong><\/td>\nPolicy<\/strong><\/td>\nKey Impact<\/strong><\/td>\n<\/tr>\n
1 Jan<\/strong><\/td>\nEstablishment of the Crypto Task Force<\/a><\/td>\n\n
\n
Launched task force for industry engagement, guidance, and a less enforcement\u2011first approach.<\/div>\n<\/div>\n<\/td>\n<\/tr>\n
23 Jan<\/strong><\/td>\nExecutive Order: Pro\u2011Crypto Direction<\/a><\/td>\n\n
\n
Ended CBDC exploration, formed President\u2019s Working Group on Digital Asset Markets, and directed agencies to review crypto rules.<\/div>\n<\/div>\n<\/td>\n<\/tr>\n
23 Jan<\/strong><\/td>\nAccounting & Custody Relief (SAB 122 Rescinded)<\/a><\/td>\n\n
\n
Removed onerous accounting\/custody rules for custodians and exchanges.<\/div>\n<\/div>\n<\/td>\n<\/tr>\n
27 Feb<\/strong><\/td>\nStaff Statement on Memecoins<\/a><\/td>\n\n
\n
Division of Corporation Finance staff expressed the view that memecoins are not securities, reducing legal uncertainty.<\/div>\n<\/div>\n<\/td>\n<\/tr>\n
6 March<\/strong><\/td>\nStrategic Bitcoin Reserve<\/a><\/td>\n\n
\n
U.S. government created a Strategic Bitcoin Reserve and Digital Asset Stockpile, signaling recognition of Bitcoin.<\/div>\n<\/div>\n<\/td>\n<\/tr>\n
20 March<\/strong><\/td>\nStatement on Proof-of-Work Mining Activities<\/a><\/td>\n\n
\n
The govt. clarified that protocol mining is not considered a securities offering, giving more clarity.<\/div>\n<\/div>\n<\/td>\n<\/tr>\n
28 March<\/strong><\/td>\nWithdrawal of Staff Advisory No. 18-14<\/a><\/td>\n\n
\n
CFTC scrapped its 2018 guidance, leaving exchanges & clearinghouses more flexibility in listing crypto derivatives.<\/div>\n<\/div>\n<\/td>\n<\/tr>\n
4 April<\/strong><\/td>\nStatement on Stablecoins<\/a><\/td>\n\n
\n
SEC staff clarified USD-pegged payment stablecoins aren\u2019t securities, exempting issuers and redeemers from registration.<\/div>\n<\/div>\n<\/td>\n<\/tr>\n
10 April<\/strong><\/td>\nH.J.Res.25, Disapproval of IRS Rule<\/a><\/td>\n\n
\n
Congress overturned the IRS broker reporting rule, removing tax reporting requirements for DeFi platforms, exchanges, and wallet providers.<\/div>\n<\/div>\n<\/td>\n<\/tr>\n
10 April<\/strong><\/td>\nStatement on Offerings & Registrations of Securities in the Crypto Asset Markets<\/a><\/td>\n\n
\n
SEC staff set clear disclosure rules for companies raising money or registering securities tied to crypto.<\/div>\n<\/div>\n<\/td>\n<\/tr>\n
28 May<\/strong><\/td>\nRescission of 2022 Guidance on Cryptocurrency 401(k) Plans<\/a><\/td>\n\n
\n
The govt. withdrew its 2022 warning on crypto in 401(k) plans, easing restrictions for fiduciaries to offer crypto investments.<\/div>\n<\/div>\n<\/td>\n<\/tr>\n
29 May<\/strong><\/td>\nStatement on Certain Protocol Staking Activities<\/a><\/td>\n\n
\n
SEC staff clarified that self-staking and certain custodial staking aren\u2019t securities, marking a shift from earlier lawsuits against Coinbase and Kraken.<\/div>\n<\/div>\n<\/td>\n<\/tr>\n
12 June<\/strong><\/td>\nWithdrawal of Amendments to Exchange Act Rule 3b-16<\/a><\/td>\nSEC rolled back plans to classify DeFi platforms as exchanges, removing requirements for them to register under Regulation ATS or as broker-dealers.<\/td>\n<\/tr>\n
12 June<\/strong><\/td>\nWithdrawal of Safeguarding Advisory Client Assets Rule<\/a><\/td>\nThe SEC dropped its plan that would have forced investment advisers to store all client crypto with qualified custodians, easing custody rules for digital assets.<\/td>\n<\/tr>\n
1 July<\/strong><\/td>\nStatement on Crypto Asset Exchange-Traded Products<\/a><\/td>\nSEC staff outlined disclosure requirements for crypto ETP issuers, including risks, custodians, fees, management, and financial details under Regulations S-K and S-X.<\/td>\n<\/tr>\n
18 July<\/strong><\/td>\nU.S. Stablecoins (GENIUS) Act (S.1582)<\/a><\/td>\nThe GENIUS Act set federal rules for payment stablecoins, requiring 1:1 reserves, monthly disclosures, and AML compliance, while confirming they are not securities.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

The U.S. government\u2019s friendlier approach to crypto and the EU\u2019s MiCA rules have created a significant rise in hiring for compliance, legal, and AML\/KYC roles in Web3. Major firms like BlackRock, JPMorgan, and Fidelity are also bringing in more quant traders, risk analysts, and smart contract engineers to grow their digital assets teams. And in 2025, about 70%<\/a> of all Web3 job placements have been remote.<\/p>\n

Bitcoin Market Insights Through Quantitative Analysis<\/h2>\n

Bitcoin\u2019s performance in Q3 stood out strongly. Over the past year, it gained around 70% after inflation, while over the last seven years, it delivered an impressive 1,250% real return. In contrast, the S&P 500 Global returned about 16% in the past year and averaged 13-14% annually over seven years, when adjusted for inflation. BTC\u2019s 1-year historical volatility remains high at roughly 43%.<\/p>\n

In essence, Bitcoin continues to outperform traditional assets. Recent U.S. fiscal developments have strengthened its role as a store of value. In Q2 and Q3, institutions and corporates increased their exposure to BTC. Much of this is happening through U.S. Bitcoin Spot ETFs, which are gradually being integrated into wealth management platforms. Based on Q2 SEC 13F filings<\/a>,<\/p>\n

<\/p>\n

\n
\n