Bitwise’s Matt Hougan said nearly every fundamental indicator that Bitwise tracks spiked sharply higher.
Bitwise chief investment officer Matt Hougan says Q3 may have been “one of the best quarters in crypto’s history,” arguing a sharp rebound in crypto prices and growing onchain markets point to the start of “crypto spring.”
In its quarterly market review published Thursday, Bitwise reported a 46.4% quarterly gain in its large-cap crypto index, along with $6 billion in US spot Bitcoin ETF inflows that brought year-to-date net flows back into positive territory.
The growth extended beyond the price of cryptocurrencies. The value of tokenized equities rose 65.5% to nearly $3.2 billion, while open interest on decentralized perpetual futures hit a new record near $26 billion, with a growing share tied to stocks, commodities, foreign exchange and pre-IPO shares.
“Page after page after page, it’s all the same: The most recent part of the chart is turning sharply upwards,” Hougan wrote. “That’s exactly what you want to see if you’re looking for the start of a crypto spring.”
Crypto analysts have been debating whether the market slump is finally over. CryptoQuant said in September that technical and onchain indicators confirmed a new Bitcoin bull market, while Bitget chief analyst Ryan Lee told Cointelegraph that more indicators were needed to confirm a cycle bottom. Hougan pointed to ETF flows and onchain activity as additional signs of a potential recovery.
Bitcoin (BTC) gained 42.3% during Q3, while Ether (ETH) and Solana (SOL) rose 69.1% and 59.2%, respectively, according to Bitwise.
All 10 constituents of the firm’s large-cap crypto index posted double-digit quarterly gains, with Chainlink (LINK) the highest performer, climbing 97.6%.
“Three months ago, crypto was in the depths of despair,” said Hougan. “Prices, onchain activity, ETF flows—everything was down.”
Year-to-date performance of the assets tracked in the Bitwise 10 Large Cap Crypto Index. Source: Bitwise
However, the rebound did not extend to every corner of the industry.
Shares of Bitcoin miners Riot Platforms and Hut 8 fell 26.4% and 25.4%, respectively, during Q3, while Galaxy Digital dropped 16.8%, according to Bitwise.
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