Bitcoin’s Weak Performance Indicates a ‘Distinct’ Altseason in Q3, According to Grayscale

Grayscale, an asset management firm, has indicated that the third quarter of 2025 might have marked an altcoin season “different from previous ones,” influenced partly by Bitcoin’s underperformance and an uptick from centralized exchanges.

As outlined in a Grayscale report published on Thursday, while returns in cryptocurrency markets, encompassing Bitcoin (BTC), Ether (ETH), AI, and smart contracts, showed positive trends in Q3, the quarter appeared to signify an “alt season.” The firm noted that the smart contracts sector gained from stablecoin legislation—likely referencing the GENIUS Act that became law in the US in July—despite AI, currencies, and BTC falling behind.

“Bitcoin trailed other market segments, and the return patterns may be interpreted as a crypto ‘alt season’ — yet different from previous instances of declining Bitcoin dominance,” the Grayscale report stated.

The report also highlighted a rise in the number of crypto treasuries accumulating diverse tokens, increased stablecoin adoption in the US, and a surge in volumes on centralized exchanges.

Grayscale suggested that additional US policies, including a pending digital asset market structure bill in Congress, might further propel crypto markets in the fourth quarter of 2025.

Related: Crypto markets are down, but corporate proxies are doing far worse

Despite BTC’s significant price increase in Q3, which hit an all-time high of over $120,000 in August, its performance remained subpar compared to other assets. Research indicates that both Bitcoin and altcoins are trailing behind gold and stocks in achieving new all-time highs, in part due to stablecoins exiting exchanges.