Q3 crypto market rundown: Who thrived, who crashed, and what’s next?
What are the main takeaways from CoinGecko’s Q3 2024 report about the crypto market’s highs and lows? How did market cap, trading volumes, and investor sentiment shift this quarter?
According to CoinGecko’s Q3 2024 Crypto Industry Report, the third quarter of 2024 was a rollercoaster for the crypto market, marked by key shifts in market dominance, surprising price movements, and investor interests.
Let’s break down the key highlights, exploring how different sectors performed and what the future holds for crypto.
Crypto market cap shrinks
The third quarter of 2024 wasn’t exactly smooth sailing for the crypto market. Despite early highs, things took a turn when global economic forces began to affect markets.
At the start of Q3 2024, the total crypto market cap reached a solid $2.61 trillion on Jul. 22, buoyed by positive investor sentiment.
However, that optimism was short-lived. By the end of Q3, the market had contracted by 1.0%, shedding $95.8 billion to close at $2.33 trillion. In addition to the dip in market cap, average daily trading volume also fell by 3.6% to $88 billion for the quarter.
This decline wasn’t just a crypto-specific issue — it was the result of broader economic forces. Global financial markets were hit by the unwinding of the yen carry trade, triggered by the Bank of Japan’s decision to raise interest rates in August.
For context, the yen carry trade involves borrowing money in Japan, where interest rates have historically been low, and investing in assets elsewhere that offer higher returns.
It’s a nifty way to make money—until interest rates rise. When Japan hiked its rates for the second time in 2024, this strategy was thrown into disarray.
Japan’s rate hike made borrowing yen less attractive, and investors began unwinding their carry trades. This caused a market shake-up, particularly on Aug. 5, with repercussions across various asset classes — including crypto. Following the shock on Aug. 5, the total crypto market cap fluctuated between $2.00 trillion and $2.20 trillion.
Moreover, escalating tensions in the Middle East, where several countries and militant groups are engaged in conflict, worsened the situation, leading to increased panic and sell-offs.
While the overall market faced turbulence, a few individual cryptos made remarkable moves in Q3 2024.
The road ahead
Now, 15 days into the final quarter of 2024, Bitcoin is riding a bullish wave, with its dominance surging to 57%. The excitement of “Uptober” is palpable, a month historically known for being Bitcoin’s most profitable.
As always in crypto, volatility is the only certainty, and the thrills of Uptober could either pave the way for a strong close to 2024 — or offer a reminder of how unpredictable this market can be.
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