Bitcoin underperformance signals ‘distinct’ Q3 altseason: Grayscale

According to Grayscale, some market sectors benefited from significant changes to US policy in the third quarter, but Bitcoin underperformed compared to Ether and others.

Asset management company Grayscale has suggested that the third quarter of 2025 may have represented an altcoin season “distinct from those in the past,” based in part on the underperformance of Bitcoin and a boost from centralized exchanges.

According to a Grayscale report released on Thursday, though returns across crypto-related markets, including Bitcoin (BTC), Ether (ETH), AI, and smart contracts, were positive in Q3, the quarter may have stood out as an “alt season.” The asset manager said the smart contracts sector benefited from stablecoin legislation — likely referring to the GENIUS Act signed into law in the US in July — while AI, currencies and BTC lagged behind.

“Bitcoin underperformed other market segments, and the pattern of returns could be considered a crypto ‘alt season’ — although distinct from other periods of falling Bitcoin dominance in the past,” said the Grayscale report.

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