The American-based crypto exchange Coinbase has published early signs that an altcoin season may be almost upon the crypto market. In its latest Monthly Outlook for August 2025, it outlined three reasons why funds could begin flowing into altcoins come September.
For context, an altcoin season is a period when at least 75% of the top 50 altcoins outperform Bitcoin over the last 90 days. The indicators suggest a potential rotation into a more mature altcoin season as September approaches.
5 Reasons Coinbase Targets September
Here are five possible reasons behind Coinbase’s prediction:
1. Decline in Bitcoin Dominance
Bitcoin’s market dominance has dropped notably from 65% in May to about 59% in August. The shift usually signals the early stages of capital flowing from Bitcoin into other crypto assets.. The decline hints at growing investor interest in altcoins and may set the stage for alt season in September.
2. Altcoin Market Cap Surges
Altcoin market capitalization has surged by over 50% since early July, reaching approximately $1.4 trillion. However, the Altcoin Season Index remains at 45, which is well below the 75 threshold typically used to confirm a full-fledged alt season.
3. Improved Liquidity
Coinbase’s liquidity index, which tracks metrics like stablecoin issuance, trading volumes, order book depth, and free float, is showing signs of recovery after six months of decline. Enhanced liquidity can boost confidence among investors, making it easier to trade altcoins without significant price slippage.
4. Anticipated September Fed Cuts
About $7.2 trillion is currently parked in U.S. money market funds. Coinbase expects that as the Federal Reserve considers rate cuts in September and October, the appeal of these cash instruments will decline, potentially unlocking retail inflows into altcoins.
5. Institutional Ether Demand
Demand for Ether is surging as crypto treasuries now hold nearly 3 million ETH, representing over 2% of the asset’s total supply. Altcoins tied to ETH, such as Lido DAO (LDO), have surged 58% month-to-date, fueled by favorable SEC guidance on liquid staking.
Not the First Alt Season Prediction
In February 2025, CryptoQuant CEO Ki Young Ju declared on X (formerly Twitter) that altcoin season had begun. He emphasized that altcoin trading volume had surged to about 2.7 times that of Bitcoin. Nonetheless, he cautioned that only altcoins with strong use cases and narratives were likely to thrive.
Meanwhile, Chris Burniske, co-founder of venture firm Placeholder, recently said that October will mark a market top. In a post on X (formerly Twitter), he disclosed price targets for BTC, ETH, and SOL. Burniske noted that if prices pull back sharply before then, the bull market might extend longer.
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