A major report from Coinbase Institutional predicts that altcoin season could begin as early as September. This market phase—where altcoins post bigger gains than Bitcoin—is being fueled by a falling Bitcoin dominance and a renewed appetite for risk among institutional investors.
Key Points You Need to Know:
Bitcoin Dominance is Falling: Bitcoin's share of the total crypto market has dropped significantly in recent weeks to around 57.4%. This indicates capital is rotating out of Bitcoin and into other digital assets.
Ethereum is Leading the Charge: The rotation is being led by massive institutional inflows into new Ethereum ETFs. With over a billion dollars in recent daily inflows, Ethereum is driving the new narrative of altcoin strength.
The Three Catalysts: According to Coinbase, three factors are driving this shift:
Falling Bitcoin Dominance: The historical signal for capital rotation.
Improved Liquidity: It's now easier for large players to trade altcoins without causing major price swings.
Increased Risk Appetite: Investors are looking for higher returns in riskier assets.
What to Watch Next:
Look to Large-Caps First: Historically, altcoin season starts with large-cap tokens like Ethereum, XRP, and Solana outperforming Bitcoin. Watch these first for signs of sustained momentum.
The Risk Factor: Remember that this shift comes with increased risk. Be cautious, as many smaller altcoins lack strong fundamentals and can experience steep corrections.
The September Trigger: According to Coinbase's analysis, the real market shift could become more pronounced in September. Keep a close eye on Bitcoin dominance and price action as the month approaches.
Do you think this is the start of altcoin season? Let me know what altcoins you're watching! Follow for more insights and updates.
