Bitcoin Holds Above $84,000, Set for Second-Best Q3 Performance on Record

Bitcoin held steady above the $84,000 mark on Sunday as the third quarter draws to a close, positioning the leading cryptocurrency for its second-best Q3 performance on record. The rally has been underpinned by strong spot trading activity and increasing institutional demand.

As of 1:39 AM ET on Sunday, Bitcoin was trading at $84,626.50, a daily gain of 0.84%, according to Investing.com data. The price reflects a cumulative gain of approximately 43.5% for the third quarter, rising from around $58,500 at the start of July.

A Record-Setting Quarter

This quarter's performance is Bitcoin's most robust since the third quarter of 2017, when it posted a gain of roughly 80%, according to data cited by Bitcoin.com. The market also successfully navigated a major quarterly options expiry event on Friday without significant price volatility.

Other major cryptocurrencies have also seen strong gains. Ethereum (ETH) is on pace for its best third quarter ever, having rallied approximately 71%. As September concludes, spot trading volumes have picked up while profit-taking has remained relatively subdued, providing a solid support base for prices.

Institutional Adoption in Focus

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Discussions around institutional adoption have been reignited by MicroStrategy Chairman Michael Saylor, who called for U.S. banks to expand their participation in the Bitcoin market. Saylor advocated for banks to offer services such as Bitcoin custody and loans collateralized by the digital asset.

He highlighted that current capital requirements, specifically the 1,250% risk weight applied to high-risk crypto assets under international banking standards, are limiting broader bank involvement. Saylor urged regulators to create distinct rules for different activities, such as banks custodying Bitcoin for clients versus holding it on their own balance sheets.

Security Risks Remain a Concern

Despite the market's bullish momentum, security remains a persistent concern, underscored by a recent hack targeting the Bitget exchange for an estimated $387.5 million. CoinDesk reported that as of Saturday, attackers had moved approximately $83 million in stolen XRP, though Ripple is unable to freeze the native token on its ledger.

Exchanges can, however, restrict accounts known to be receiving the illicit funds. Bitget has stated that its protection fund is sufficient to cover all losses and that user assets are secure. The exchange plans to resume withdrawals for Bitcoin, Ethereum, and USDT between September 28 and September 30.