Bitcoin Heads for Best Quarter Since Late 2024 as Traders Reduce Leverage

Bitcoin's third quarter is shaping up to be its strongest since Q4 2024, with a 41.88% increase according to CoinGlass data. This would put it on track for its best quarterly performance since then, when Bitcoin rose 47%. However, the rally's structure may be as notable as its size, with Bitcoin open interest down about 20% from earlier September levels.

This suggests traders have been reducing leveraged exposure even as prices climbed. The combination of stronger spot ETF demand and lower open interest has shifted attention toward whether fresh institutional allocation can extend the move into Q4. Fundstrat's Tom Lee said Wednesday that only around 2% of institutions in their universe have an allocation, 'I think you'll see a big rotation in the fourth quarter,' he stated.

Last week, U.S. spot Bitcoin ETFs saw an inflow of $2.4 billion, the highest amount since October 2025, according to SoSoValue data. This turned the funds' 2026 flows positive, with estimates now at about $934.1 million for the year.

Bitcoin's price was trading around $83,777, down 0.4% in the last 24 hours. On Stocktwits, retail sentiment around BTC remained in the 'bearish' zone while chatter dropped to 'low' from 'normal' levels over the past day.