The third quarter of 2024 was challenging for the crypto market. While it started strong, global economic forces significantly impacted investor sentiment and market dynamics.

Crypto market cap shrinks

At the beginning of Q3 2024, the total crypto market cap reached $2.61 trillion but shrank by 1.0% by the quarter's end, losing $95.8 billion. This decline was influenced by broader economic conditions, including sharp interest rate hikes in Japan, which created financial market instability.

BTC gains market share but trails behind traditional assets

Even though BTC saw limited price gains, its market share increased to 53.6%, as altcoins like Ethereum and Binance Coin took a bigger hit. BTC underperformed compared to traditional assets like gold, which rose by 13.8%, and the Japanese yen, which increased by 12.0%.

2024 Q3 crypto price returns

While the overall market trend remained neutral, some tokens stood out. Aave surged by 61% due to its 'fee switch', and Ripple increased by 29% following a legal victory. In contrast, Ethereum dropped 24% in value despite the launch of spot ETFs.

The crypto market in Q3 2024 saw significant fluctuations influenced by both internal and external factors. As we move into Q4, new challenges and opportunities await.