Over the past quarter, the CoinDesk Market Index (CMI) is down 11%. Bitcoin (BTC) fell 10.9% and Ethereum (ETH) lost 12.5%. However, since the beginning of the year, Bitcoin has increased by 64%, and Ethereum by 41%. In the third quarter of 2023, the Compute (CPU, +3%) and DeFi (DCF, -8%) sectors performed relatively better, while the Smart Contract Platform (SMT, -13%) and Culture and Entertainment (CNE, -22) sectors %) is relatively worse.
Cryptocurrencies were influenced by news about regulation in the United States, in particular, the actions of the SEC. September saw an increase in returns in the DeFi, digitalization and computing sectors. September also marked one year since Ethereum successfully transitioned to the “Proof-of-Stake” consensus mechanism. During the quarter, the average return on Ethereum staking was 4% (annual), decreasing by the end of September to 3.6%.
This quarter has seen a decrease in the level of risk in the cryptocurrency market, which may indicate the maturity of the market. However, tightening financial conditions and a stronger US dollar could create further headwinds for cryptocurrency prices. A possible catalyst for overcoming these obstacles could be the approval of a Bitcoin ETF based on spot assets, making it easier for a wide range of investors and institutions to invest in cryptocurrencies.
Cryptocurrencies were influenced by news about regulation in the United States, in particular, the actions of the SEC. September saw an increase in returns in the DeFi, digitalization and computing sectors. September also marked one year since Ethereum successfully transitioned to the “Proof-of-Stake” consensus mechanism. During the quarter, the average return on Ethereum staking was 4% (annual), decreasing by the end of September to 3.6%.
This quarter has seen a decrease in the level of risk in the cryptocurrency market, which may indicate the maturity of the market. However, tightening financial conditions and a stronger US dollar could create further headwinds for cryptocurrency prices. A possible catalyst for overcoming these obstacles could be the approval of a Bitcoin ETF based on spot assets, making it easier for a wide range of investors and institutions to invest in cryptocurrencies.