In its first quarterly industry report, the Australian cryptocurrency exchange spotlighted the rapid evolution of the sector during Q3 2025, describing the period as “foundational” for the asset class as the total cryptocurrency market cap surged to US$4 trillion.
“It was a period of maturation for the industry, where the cryptocurrency scene stamped its authority on the financial world and said, ‘I am here to stay’,” the report said.
Investor sentiment throughout the quarter was strongly shaped by the US rate-cutting cycle, with the Federal Reserve lowering interest rates for the first time this year. As bitcoin and Ethereum both reached new all-time highs, the rate cut prompted investors to broaden their portfolios to include a wider range of digital assets.
“The digital asset market spent much of Q3 in a deadlock, with a tug of war playing out between bulls and bears. The next three months may reveal whether bullish momentum has run its course, or if the upwards cycle can push even higher,” the report said.
One of the most significant policy shifts during Q3 was the introduction of the GENIUS Act, which brought formal regulation to stablecoins in the United States.
“The introduction of the GENIUS Act in July paved the way for regulatory clarity, giving both institutional and retail investors greater confidence to adopt pegged assets,” the report said.
Stablecoins saw strong growth, with their total market cap increasing by 17 per cent during the quarter, approaching US$300 billion in circulation.
“Stablecoins have solidified their position as the bridge between DeFi and TradFi, shaping up for deeper capital market involvement in 2026 and beyond,” Swyftx said.
Q3 also marked a strengthening relationship between traditional finance and decentralised finance.
“TradFi and DeFi are converging to create more sophisticated investor products like crypto-backed lending, while legislation such as the GENIUS Act is setting the stage for the next wave of innovation,” the report said.
“Digital asset ETFs have again drawn strong investor interest, and set against the backdrop of regulatory clarity, confidence among TradFi players is growing.”
Meanwhile, global cryptocurrency treasuries grew by US$25 billion during the quarter. Bitwise reported that the number of public companies holding bitcoin rose by nearly 40 per cent, with 48 new firms acquiring the digital asset in Q3 alone.
“We witnessed the continued adoption of major cryptocurrencies by corporations and institutional players, cementing their importance in the investment strategies of businesses, governments and banks,” the Swyftx report said.
“As corporates increasingly allocate crypto to their treasuries, the divide between TradFi and DeFi narrows. These holdings provide noteworthy credibility and influence within broader financial markets.”
Michael Saylor’s company, Strategy, the world’s largest corporate holder of bitcoin, continued to ramp up its exposure, acquiring 42,510 BTC in Q3 2025, valued at over AU$5 billion.
In September, SharpLink and BitMine collectively added more than US$3 billion worth of Ethereum to their holdings, following ETH’s all-time high in August.
“Ethereum presents itself as both a capital growth and a yield asset due to its staking potential, leading several new companies to begin building ETH treasuries,” Swyftx said.
However, interest in digital asset treasuries is expanding beyond bitcoin and Ethereum as Q3 saw multiple companies integrating Solana into their reserves strategy.
“Forward Industries is the leader in this space, securing 6.82 million SOL on the 15th of September. In the three days following this purchase, SOL’s price jumped 7 per cent, demonstrating the potential price impact that treasuries can have,” the report said.
Despite these gains, Swyftx noted that Q3 was characterised by a lack of momentum in the broader altcoin market. Historically, new highs in bitcoin or altcoins have often preceded broader market rallies – but that pattern hasn’t played out yet.
“The data makes it clear and provides insights into investor frustration towards altcoins. This marks the longest stretch of consolidation the sector has seen without a broad breakout,” the report said.
“That may sound gloomy, but it’s also a set-up. If TOTAL3ES (total crypto market cap minus BTC, ETH and stablecoins) breaks higher for the first time in years, Q4 could finally deliver the long-awaited altcoin rotation.”
However, Q4 has stumbled out of the gate following the most significant cryptocurrency crash in history. On 11 October, President Donald Trump’s announcement of 100 per cent tariffs on China wiped out US$800 billion from the market.
The fallout was swift: bitcoin plunged from above US$125,000 to below US$102,000 in just 10 minutes. Ethereum (ETH) also dropped below US$3,800.
Zerocap’s Emir Ibrahim identified sticky inflation as the key risk to Q4’s bullish outlook.
“Markets still expect 25 bps cuts in October and December, but a pause or reversal would tighten USD liquidity and cool risk appetite.
“That scenario would likely test BTC’s US$100–109k floor, trimming 10–20 per cent from the total cryptocurrency market cap,” Ibrahim told InvestorDaily.
“Higher yields would also start competing with crypto’s risk-adjusted return profile, slowing ETF inflows and pulling some liquidity out of alts. If that coincides with tariff shocks or a delayed CPI print, volatility could spike again. However, the Q3 resilience versus equities shows crypto is slowly decoupling, helped by strong on-chain activity and persistent stablecoin demand.”
Despite the volatility, Ibrahim sees underlying strength in bitcoin’s price action near the US$110,000–120,000 range.
“‘Uptober’ seasonality, the Fed’s liquidity backdrop and persistent institutional accumulation are still powerful tailwinds,” Ibrahim said.
“That said, after such a strong run, markets are stretched. Resistance near US$125k could hold short-term, triggering a pullback toward US$108–110k before continuation. Overall, the set-up feels more like consolidation within an uptrend, rather than exhaustion.”
