Bitcoin’s Lackluster Performance Indicates a ‘Unique’ Altseason in Q3, According to Grayscale

Grayscale, an asset management firm, has indicated that the third quarter of 2025 may have marked an altcoin season that is “distinct from those in the past,” influenced partly by Bitcoin’s underperformance and a rise in centralized exchanges.

A Grayscale report released on Thursday noted that, while returns across crypto markets, including Bitcoin (BTC), Ether (ETH), AI, and smart contracts were positive in Q3, this quarter may have been particularly notable for an “alt season.” The asset manager highlighted that the smart contracts sector gained from stablecoin legislation—likely referring to the GENIUS Act enacted in the US in July—while AI, currencies, and BTC fell behind.

“Bitcoin underperformed other segments of the market, and the trend of returns could be viewed as a crypto ‘alt season’ — though different from previous declines in Bitcoin dominance,” stated the Grayscale report.

The report also touched on themes such as an increase in the number of crypto treasuries holding various tokens, expanded use of stablecoins in the US, and growing volume in centralized exchanges.

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

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

Despite Bitcoin’s notable price increase in Q3, hitting an all-time high of over $120,000 in August, its performance still lagged behind other assets. Research indicated that Bitcoin and altcoins were trailing gold and stocks in achieving new record prices, partly due to stablecoins exiting exchanges.