Altseason is coming soon: Coinbase Institutional forecast

Altcoin season in July has not come. In addition, analysts talk about the so-called the August curse of bitcoin. But it can play into the hands of altcoins.

The altseason may begin in a few weeks, most likely in September. This is the time period when tokens other than BTC start to grow significantly in value. The generally accepted definition of the altcoin season is when at least 75% of the top 50 altcoins by market capitalization outperform BTC over the previous 90 days.

If the following three conditions are met, the market will be covered by a green wave:

• a decline in bitcoin’s dominance in the market,
• improving liquidity,
• growing willingness of investors to move to assets with a higher beta coefficient.

The dominance of bitcoin (its share of the total value of the cryptocurrency market) has shown signs of weakening after achievement of record value earlier this year. When this figure declines, capital historically flows into large altcoins and then into mid- and small-cap tokens. Currently, this altcoin — Ethereum (ETH).

In addition, the improved liquidity often encourages the participation of larger players who might otherwise avoid less popular tokens. All of this pulls capital into smaller tokens.

In addition, when macroeconomic conditions stabilize and volatility remains subdued, investors are more likely to seek higher returns from riskier assets.

Analysts do not dare to say for sure which tokens will be the pioneers of the upcoming alt-season. However, there is a pattern with previous market cycles, where the top coins initially showed better results, followed by assets with a smaller capitalization.

For example, traditional leaders have already shown growth: ETH (+37.9%), XRP (+49%). Solana (SOL) +1.67%, Cardano (ADA) +8.96%, and Dogecoin (DOGE) -27.5%, showed worse results.

Source: Coinbase Institutional