Bitcoin Sees Strongest Quarter Since 2024 Despite Traders' Reduced Leverage

Bitcoin is heading into its strongest quarter in nearly two years, but traders are taking on less risk. The cryptocurrency's price has risen by 41.88% in Q3, making it on track for its best quarterly performance since Q4 2024.

This growth comes despite a decrease in derivatives positioning and open interest, which fell roughly 20% from earlier September levels. This suggests traders have been reducing leveraged exposure as prices climbed.

The decline in open interest may make the rally less exposed to leverage flushes, said analytics firm Glassnode. The firm noted that this could be a positive sign for Bitcoin's price stability.

In other news, U.S. spot Bitcoin ETFs saw an inflow of $2.4 billion in the week ending Sept. 25, their best week since October 2025. This influx of investment has turned the funds' 2026 flows positive, with SoSoValue estimating them at about $934.1 million for the year.

Tom Lee from Fundstrat stated that only around 2% of institutions in his universe have an allocation to crypto. He predicts a 'big rotation in the fourth quarter', which could extend the move into Q4.