Altcoins are growing rapidly, and the current conditions in the crypto markets suggest that there may be a move away from Bitcoin to other cryptocurrencies, says Coinbase.
“We think current market conditions now suggest a potential shift towards a full-scale altcoin season as we approach September,” David Duong is the global head of Research at Coinbase Institutional. wrote In a report of the monthly outlook on Thursday.
Coinbase’s analyst has joined a chorus of market watchers and traders who are predicting an upcoming altcoin boom.
It is a firm that defines altcoin season As when 75% or more of the 50 top altcoins ranked by their market capitalization have outperformed Bitcoin (BTC), over the 90-day period prior.
Duong said that there were “significant retail capital sitting on the sidelines” Federal Reserve could ease money markets and the Federal Reserve. “unlock greater retail participation in the medium term.”
Consumer Price Index in July (CPI), United States this week The inflation rate was 2.7%, which is the same as last year. odds The futures market increased the probability of a Fed rate cut in September to 92%.
Low interest rates can attract fresh capital and act as a catalyst to high-risk investments such as altcoins.
Bitcoin dominance is declining
The decline of Bitcoin’s dominance in the crypto-market capitalization or its share is another factor that influences the arrival and growth of the altseason.
Bitcoin’s dominant market share has fallen by approximately 10%, from more than 65% in may 2025 to 59% around August 2025. “signaling the early stages of capital rotation into altcoins,” Duong writes.
Related: Altseason on horizon amid liquidity surge, regulatory clarity: Sygnum
Bitcoin dominance has dropped to 59.5% – its lowest since the end of January. according TradingView is a trading platform.
“Bitcoin dominance has just formed its first monthly bearish cross since January 2021,” observed crypto day trader Ito Shimotsuma on Thursday. “Back then, altcoins went up only for four months when it happened,” He said, before adding: “Something similar this time will cause an up-only rally till December 2025.”
Altcoin Season Indexes are Moving Higher
Altcoin indexes are also climbing, though they remain below the threshold of 75 that has historically defined altseasons. This is despite the fact that the altcoin’s market capitalization has increased by over 50% since the beginning of July.
CoinMarketCapʼs Altcoin Season Index The current ranking is 44. It was below 25 when it began in July. Blockchain Center’s Altcoin Season Index CryptoRank’s Altseason is at 53. Index This is the level 50.
Altcoins are gaining popularity due to institutional interest in ETH
Duong claimed that current momentum has been fueled by digital asset treasuries Altseason indexes diverge from total altcoin market capital, resulting in different narratives about stablecoins. “reflecting rising institutional interest in Ethereum,” Before concluding,
“With the altcoin market cap climbing and the Altcoin Season Index showing early positive signals, we believe conditions are setting up for a potential rotation into a more mature altcoin season as we head into September.”
“Three key conditions need to align for an altcoin season to take hold: a supportive macro backdrop, declining BTC dominance, and a strong new narrative,” Joanna Liang is the founding partner of Singapore’s venture capital company Jsquare. She spoke to Cointelegraph.
“Past cycles were driven by clear catalysts: ICOs in 2017–2018, Layer-1s in 2018–2019, and DeFi/NFTs in 2021–2022,” She said, before adding:
“In this cycle, the market is still waiting for a compelling primary-market signal that can draw significant new capital and truly ignite an altseason.”
Magazine: Altcoin season 2025 is almost here… but the rules have changed
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Source: cointelegraph.com
