3 Reasons Why Altcoins Are Likely to Outperform Starting in September: Coinbase Research

The Altcoin season may be weeks away, according to the latest monthly expectations of Coinbase, which expects a shift in driving the market from Bitcoin to alternative cryptocurrencies that start in September.

The Altcoin season indicates the market stage when encrypted currencies other than Bitcoin-led by Ethereum’s ETH, Solana’s Sol, and other large symbols that contain much higher BTC over a sustainable period.

The August 14 report, which is composed by David Duong, head of Coinbase Research, determines three main drivers: the dominance of the Bitcoin market, the improvement of liquidity and the increasing investor’s willingness to rotate to higher assets of homes. Duong frame this as a periodic transition, as the capital moves to the risk curve while building market confidence.

Bitcoin’s dominance – its share of the total market value of encryption – showed signs of softening after the peak earlier this year. Coinbase argues that with a decrease in this measure, the capital flows historically to the large altcoins, then to the mid -names. They suggest that this rotation effect will become more clear in September.

Liquidity trends also turn into more convert to Altcoins. Coinbase notes more tightly at BID-ASC and deeper requests via main stock exchanges, making it easier for traders to enter and leave Altcoin sites without incurring heavy slide. Improved liquidity often encourages the participation of big players who may avoid the least circulating codes.

The third factor is the feeling. Duong writes that with the stability of total conditions and fluctuations, investors are likely to seek higher returns in the most dangerous encryption assets. This environment can enhance continuous flows in the Altcoin market, especially if the price of Bitcoin is integrating instead of height to the highest level.

Coinbase stops predicting the symbols that will lead these drawings but highlight the pattern of previous market courses, as blue performance outperformed assets, followed by small assets. The report warns that although September may be the beginning, the duration and size of this step depends on both market conditions and the macroeconomic economy.

BTC increased by 27.2 % on an annual basis, but it abandoned some major altcoins such as ETH (+37.9 %) and XRP (+49 %), while others like Sol (+1.67 %), ADA (+8.96 %) and Doge (-27.5 %) have left. Coinbase maintains that market conditions in general can prefer a wider rotation in Altcoins in the coming months.