If you’ve been keeping an eye out for Bitcoin this year, you likely observed that its journey was anything but predictable. The flagship crypto started the year at around $65BN, reached a peak price that pushed its market cap to an ATH of over $123BN in early spring, and by the end of July, settled into a consolidation range between $85BN and $95BN, welcoming Q3 in an unsurprising, humble position to Ethereum. The ETH/BTC ratio registered a steady rise, reflective of the surging investor confidence in the second-largest crypto on the back of the latest network upgrades and layer-2 solutions over the Q3’s first month. And now, the two assets seem to sit down and take a breath. Bitcoin is in a phase that many experts call the “consolidation” phase, digesting the steady gains secured this year and building the foundation for what may come henceforth.
As a CryptoQuant analyst put it at the end of July, the weaker demand in Bitcoin registered from U.S. investors can disclose something more than apparent skepticism: investors would rather hold instead of trading. This cautious behavior, however, is offset by the increasing investor interest from outside the U.S.
As Q3 draws to a close, the market is keeping a close eye on Bitcoin, altcoin leader Ethereum, and other prominent cryptocurrencies. Whether you’re just getting started or are experienced with crypto, understanding the forces molding the poster crypto and the broader market will help make better-informed decisions moving forward.
Q3 and Q4: The witnesses of a shifting regulatory landscape
If you’re convinced you want to get involved with crypto this year, you can’t ignore the shifting regulatory landscape – at least not intentionally, since these changes are all over the news. Q3 has so far been an amalgam of geopolitical, technological, and economic shifts that each sent shockwaves through the system.
The U.S.
U.S. regulator SEC continues to keep a vigilant eye on crypto, though the approval of new BTC and ETH ETFs sends a positive message that it’s steadily warming up to crypto – just cautiously. Regulators are beginning to embrace crypto products, provided that they meet all the necessary compliance standards. For investors, including you, this means more accessible ways to invest in crypto-based products and profit off the market’s tides without worrying as much about the risks unregulated exchanges pose.
Importantly, U.S. has no single crypto law; instead, it offers fragmented monitoring between the SEC, FinCEN, CFTC, and state regulators, which means that investors face a decent share of uncertainty depending on the state involved.
The EU
When it comes to the EU, the MICA framework’s progress has been improving clarity and protection for investors ever since it was introduced in late 2024, contributing with key provisions like:
- The regulation obliges crypto projects to publish the issuer in the whitepaper, alongside governance, token mechanics, and associated risks
- It standardizes fee disclosures, token listing policies, and stablecoin reserve support
- The regulation enforces strict marketing and communication rules, requesting ads to be fair, clear, and transparent
- It introduces protections against insolvency or misrepresentation.
Canada
In Canada, cryptocurrencies are classified as commodities while crypto exchanges are regulated as securities dealers under the Canadian Securities Administrators (CSA) and must be registered with it. Transactions are subject to capital gains tax, and businesses that take crypto for their offerings must report the takings as income.
What about the rest of the digital asset world?
Bitcoin is the headline, and for many, it is synonymous with “cryptocurrency” – talking about digital currency and hearing someone blurt out “Bitcoin” before you finish your sentence is a way too common sighting. But there are thousands of other cryptocurrencies out there that, while not as commanding as Bitcoin, Ethereum, or XRP, still manage to influence the market’s undercurrents. If you’ve been watching the market’s tides, you’ve possibly noticed it recover from dips and climb just a bit above $3TN by the end of July. However, it’s essential to note that the rise hasn’t been a uniform upward trajectory.
Ethereum, for instance, is experiencing significant developments, with major tech upgrades that are helping to push its price up. Layer-2 solutions, such as Arbitrum and Optimism, for instance, are driving Ethereum’s fame and contributing to the platform’s increased utilization rates, which enable cheaper and faster transactions. If you’re familiar with DeFi, dApps, or NFTs, this upgrade means a smoother and cheaper experience that can further promote adoption – and that’s good for your ETH holdings.
On the other hand, many smaller coins are stagnating or climbing too slowly to reward traders with substantial gains. Over 1.5MN tokens disappeared from the market in the third quarter due to poor leadership, lack of use, or scams. What to draw from this? It’s an unwelcome lesson reminding investors to thoroughly evaluate targeted projects and only invest in well-established ones. If something feels off, it probably is.
If you look to expand your portfolio with cryptos other than Bitcoin, Ethereum, and other massive-market-caps, understanding the facets of the market can help you make safer decisions.
What’s next for Q4?
In Q4, most experts expect Bitcoin to start climbing again after staying at similar prices for a while. Some experts think it could go up to $110K–$140K by the end of the year because large investors are buying more, interest rates might go down, and the global economy could improve. But prices can still change quickly for there are many more factors playing into how crypto performs, so educate yourself on all these before you jump in. If you’re thinking about increasing your exposure, you need to be ready for price swings that might put your patience to the test.
On the other hand, Ethereum’s growth story is expected to continue, powered by the tech upgrades and layer-2’s expanding use. Thus, if you hold or plan to hold ETH, understanding these underlying improvements will help you stay grounded through ups and downs.
Overall, innovation in crypto seems to be thriving, with new protocols, easy-to-use platforms, and cross-chain tools steadily making it more accessible and practical for everyday users.
