Bitcoin Rises 44% in the Third Quarter, Fueling Bull Market
The rally follows oversold conditions and a short squeeze, while the SEC is making room for tokenized stocks on the blockchain. Ethereum and other altcoins are also riding the move.
Key Takeaways
- Bitcoin rose about 44% in the third quarter, marking its strongest stretch since the last three months of 2024.
- BTC outperformed gold, the S&P 500, and the Nasdaq, but it is still trading about 48% below the $126,000 record.
- The rally was helped by oversold conditions, a short squeeze, and more optimism around regulation, while several altcoins also climbed sharply.
Bitcoin is up about 44% in the third quarter, making this its strongest stretch since the last three months of 2024. That means it is outperforming gold, the S&P 500, and the Nasdaq, even though bitcoin earlier this year was still lagging behind stocks that benefited from the AI hype. Still, BTC is trading about 48% below the record of $126,000 (€109,900) from October last year.
Strong Turn in the Crypto Market
According to market participants, the rally started mainly with oversold conditions, which drew in bargain hunters. After that, a short squeeze added more momentum. The recent rise also came alongside more optimism around regulation, after the U.S. SEC approved a temporary five-year innovation exemption on September 17 for certain trading platforms that want to trade tokenized U.S. stocks through automated market makers and blockchain liquidity pools.
Tagus Capital sees Ethereum as the main beneficiary of that opening, because the network plays an important role in tokenized assets. That fits the broader picture that the crypto market is not being driven by Bitcoin alone. ETH, XRP, SOL, UNI, and NEAR also posted gains of about 40% to 150% during this period.
Bitcoin Still Below Its Record
Despite the strong move higher, Bitcoin does not look extremely expensive at this level compared with last year’s peak. The coin has had a choppy ride in 2026, though. In June, BTC fell to nearly $58,000 (€50,600), well below the top of about $126,000 (€109,900) in October 2025. That makes the current rebound especially notable for traders who earlier this year were mostly betting on more weakness.
That bigger move also fits Bitcoin’s familiar four-year rhythm, where a period after the halving is often followed by a bull market and then a correction. Analysts are keeping in mind that the bear market may not be fully over yet and that a more durable recovery could become clearer later in the year.
What This Means for Investors
For European crypto followers, the big takeaway is that Bitcoin is once again outperforming major traditional markets. That could be a sign that interest in crypto is broadening, especially now that altcoins are also moving sharply higher. At the same time, the gap to the old record shows that the market is still sensitive to fast reversals, something analysts like FxPro are also pointing out. Earlier, a major short squeeze already caused a similar acceleration, showing how quickly the market can flip when short positions are forced to close.
