The Altcoin season can be weeks away, according to the last monthly institution of institutional coinbase, which predicts a change in the leadership of the Bitcoin market to alternative cryptocurrencies that begin in September.
The Altcoin season refers to a market phase when cryptocurrencies other than Bitcoin, often directed by Eth of Ethereum, Sol de Solana and other chips of great capitalization, publish significantly higher percentage profits than BTC for a sustained period.
The August 14 report, written by David Duong, Chief of Global Coinbase, identifies three main drivers: the fall in the Bitcoins market domain, the improvement of liquidity and the growing disposition of investors to rotate in assets of greater beta. Duong puts this as a cyclical transition, and capital advances through the risk curve as market confidence accumulates.
The Bitcoin domain, its part of the total criptography market value, has shown signs of softening after reaching a peak earlier this year. Coinbase argues that as this measure decreases, capital historically flows to high capitalization, and then to medium and small capitalization names. They suggest that this rotation effect will be more pronounced in September.
Liquidity trends are also becoming more favorable for Altcoins. Coinbase points out that the strictest offer differentials and the deepest orders books in the main exchanges, which makes it easier for merchants to enter and get out of alternative positions without incurring a heavy slip. Improved liquidity often encourages the participation of larger players that could otherwise avoid less quoted tokens.
The third factor is feeling. Duong writes that as macro conditions stabilize and volatility remains contained, investors are more likely to seek greater yields in more risky cryptographic assets. This environment could foster sustained tickets in the Altcoin market, particularly if the price of Bitcoin is consolidated instead of increasing the new maximums.
Coinbase stops the prediction of which tokens will lead the load, but highlights the pattern of previous market cycles, where the blue chip altcoins exceeded first, followed by lower capitalization assets. The report warns that, although September can mark the beginning, duration and magnitude of the measure will depend on both market and macroeconomic conditions.
BTC has increased by 27.2% in the year in which it continues, but it has followed some important alternatives such as ETH (+37.9%) and XRP (+49%)while others like Sol (+1.67%)Ada (+8.96%) and dux (-27.5%) They have been delayed. Coinbase argues that market conditions in general could favor a broader rotation in Altcoins in the coming months.
