Analysts see legislation, tokenization, and ETFs as catalysts for Bitcoin and altcoins
Analysts expect the fourth quarter to deliver strong momentum for the crypto market, citing favorable policy shifts, stablecoin adoption, and the growth of exchange-traded products (ETPs). The outlook follows a Q3 dominated by digital asset treasury activity.
Grayscale’s research team said the newly introduced CLARITY Act in the U.S. represents “comprehensive financial services legislation” that could accelerate crypto’s integration into traditional markets. At the same time, the SEC’s approval of a generic listing standard for commodity-based ETPs may widen investor access, leading to stronger inflows.
Grayscale also noted that the Federal Reserve’s rate cut on Sept. 17 could act as a tailwind for risk assets, though some economists, including JPMorgan CEO Jamie Dimon, warned further cuts may be limited unless inflation falls significantly.
Stablecoins at the forefront
Edward Carroll, head of markets at MHC Digital Group, believes stablecoin growth will be a primary driver of Q4 returns. With the GENIUS Act signed into law in July, clear rules for payment stablecoins are on the horizon, a move Carroll says will benefit chains like Ethereum, Solana, Tron, BNB, and layer-2 networks.
He added, “This should be positive medium- to long-term for any chain being used for stables, but more fundamentally for the companies building and providing the products to market.”
Bitcoin and altcoin rally potential
Swyftx analyst Pav Hundal sees inflows into ETFs and funds as a catalyst for another Bitcoin rally toward year-end, sparking altcoin surges. He noted that ETFs absorbed an average of 1,755 BTC per day in 2025, according to River data.
“Unless the market is kneecapped by something unexpected, Bitcoin will likely hit new highs before the end of the year, and that will fuel altcoins,” Hundal said.
Henrik Andersson, CIO at Apollo Crypto, predicts Q4 could include approvals for staked-asset ETFs and further momentum in DeFi revenue-generating projects and real-world asset (RWA) tokenization.
Still, he cautioned that “rate cut expectations in the U.S. might disappoint as the economy and labor market are holding up stronger than the Fed feared.”
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.