"#MarketTurbulence large-scale altcoin season" could be near
Bitcoin's dominance has fallen to a six-month low, while the market capitalization of altcoins has increased by 50% since July, laying the groundwork for a possible altcoin season in September, according to Coinbase.
Coinbase: a "large-scale altcoin season" could be near
News
Altcoins have experienced significant growth recently, and the current conditions in the cryptocurrency market suggest that there could soon be a shift towards cryptocurrencies beyond Bitcoin, according to Coinbase.
“We believe that the current market conditions now suggest a potential shift towards a large-scale altcoin season as we approach September,” wrote David Duong, global director of research at Coinbase Institutional, in a monthly outlook report on Thursday.
The Coinbase analyst joins a growing chorus of traders and market watchers predicting an imminent altcoin season.
The firm defines altcoin season as the time when at least 75% of the top 50 altcoins by market capitalization outperform the returns seen by Bitcoin (BTC) in their last 90 days.
Duong added that there was “significant retail capital on the sidelines” in money market funds, and the Federal Reserve's easing could “unlock greater retail participation in the medium term.”
The US Consumer Price Index (CPI) for July this week showed that inflation remained at 2.7% year-on-year, which has caused the odds of a Fed rate cut in September to rise to 92% in futures markets.
A lower interest rate environment could attract new capital to the market and be a catalyst for high-risk assets like altcoins.
