CoinGecko says a lot of that momentum came from the US Treasury planning to at least double its buybacks of long-term government bonds, plus steady inflows into spot Bitcoin ETFs.
These developments improved market sentiment and supported demand for digital assets, but none of this guarantees crypto prices will keep rising.
It’s also notable that the market held up well even after the US Senate failed to move the CLARITY Act forward in a September 15 procedural vote.
Declining Trading Volume Raises Questions
Despite the large increase in market capitalization, average daily crypto trading volume dropped 8.6% from the previous quarter to $73.3 billion.
CoinGecko also reports that spot trading volume on the top 10 centralized exchanges dropped 14.2% to $1.65 trillion.
That gap matters because when prices climb while trading activity weakens, it can be a sign the rally isn’t pulling in buyers as reliably as the headline numbers suggest. If demand dries up, prices could be more vulnerable to a selloff.
Nevertheless, lower quarterly volume doesn’t automatically mean a reversal is on the horizon. CoinGecko reported that average daily trading volume rose from $57.7 billion in July to $94.8 billion in September. That bounce suggests more people were trading as the quarter went on, even if the overall quarterly average was still below Q2.
Can Bitcoin and Altcoins Extend the Rally?
Bitcoin and altcoins could stay on the rise if ETF demand remains strong, the economy continues to be favorable for risky investments, and regular spot trading picks up. Still, investors should wait for confirmation instead of assuming the Q3 rebound guarantees further gains.
Ethereum was a clear standout, climbing 71% over the quarter and beating Bitcoin and other major cryptos. CoinGecko credits some of that strength to $3.1 billion flowing into spot ETH ETFs.
That said, the overall market recovery remains incomplete.
In spite of Q3’s $840.1 billion increase, total crypto market cap was still down 4% year-to-date at the end of September. The rally reversed a prolonged decline, but it didn’t wipe out losses from earlier in the year.
To judge whether the rebound can keep going, traders should keep an eye on several things, including spot trading volume (high activity equals a better sign of real demand), Bitcoin ETF flows (steady inflows would support $BTC), derivatives open interest and liquidations, and the macro backdrop.
Additionally, gains spread across Bitcoin, Ethereum, and other altcoins would point to a healthier recovery than one driven by just a few assets.
Related: Why $BTC Is Struggling to Break Higher Despite Aggressive Buying
Related: 24 Hour Crypto Recap: Here’s What Happened in the Market
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