Key Takeaways:
- Coinbase predicts a potential full-scale altcoin season by September, driven by retail capital, Fed rate cut prospects, and weakening Bitcoin dominance.
- Bitcoin market dominance has dropped from 65% in May to 59% in August, suggesting early signs of capital rotation into altcoins.
- Altcoin market cap is up over 50% since July, with altseason indicators rising but not yet signaling a confirmed altseason.
Coinbase predicts a potential full-scale altcoin season as early as September, based on growing momentum and shifting market conditions.
According to David Duong, Coinbase Institutional’s head of research, over 75% of the top 50 altcoins could soon outperform Bitcoin in a 90-day window – a key indicator of altseason.
Altcoin Season is coming
— Coinbase Institutional 🛡️ (@CoinbaseInsto) August 14, 2025
As September approaches, the transition to a full-scale altcoin season is likely.
Our positive 3Q25 outlook stems from macro trends such as potential Fed rate cuts and expected regulatory advancements.
More key themes in this Monthly Outlook report ↓
Several factors support this outlook, including declining Bitcoin dominance (from 65% in May to 59% in August), a 50% surge in altcoin market cap since July, and significant retail capital still waiting on the sidelines.
Duong highlighted that if the Federal Reserve cuts interest rates in September – which futures markets now estimate at a 92% probability – it could unlock broader retail participation in higher-risk assets like altcoins.
Additionally, trader sentiment is shifting: technical analysts, including Ito Shimotsuma, point to a bearish crossover in Bitcoin dominance as a historic signal of altcoin rallies.
While indicators like CoinMarketCap’s Altcoin Season Index (44) and Blockchain Center’s Index (53) haven’t fully confirmed an altseason yet, the data suggests growing momentum.
If history repeats, a breakout altcoin rally could extend through the end of 2025.
About The Author
Efe Bravo, a seasoned journalist, delivers compelling insights into the cryptocurrency and blockchain industry.
His articles offer a deep dive into the latest trends, projects, and technological advancements shaping the future of digital finance.
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