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Coinbase foretells the Arrival of Altcoin Boom

Coinbase Predicts a Wide-scale Resurgence of Alternative Cryptocurrencies Might Be Imminent

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Cryptocurrency Exchange Coinbase Anticipates a Rise in Altcoins
Cryptocurrency Exchange Coinbase Anticipates a Rise in Altcoins

Coinbase foretells the Arrival of Altcoin Boom

In the rapidly evolving world of cryptocurrency, a potential altcoin season is brewing in 2025, as indicated by a decline in Bitcoin's market dominance. The shift from Bitcoin's stronghold to altcoins has been gradual, with Bitcoin's dominance dropping from approximately 65% in May to around 59% in August[5].

Bitcoin, however, has shown resilience, posting an approximate 10% increase in value this year[2]. Despite this, many major altcoins have experienced significant declines, except for a few such as XRP[2]. This performance underscores institutional confidence in Bitcoin's stability, liquidity, and regulatory acceptance, which have traditionally sustained Bitcoin seasons[1][2].

The emergence of an altcoin season could be influenced by several key factors:

  1. Institutional inflows and regulatory clarity: Enhanced regulation and institutional adoption could ignite interest in innovative altcoin projects, particularly those integrating AI and real-world applications[1].
  2. Technological developments: New protocols and themes, such as AI integration, are expected to attract attention and investment towards certain altcoins[1].
  3. Altcoin ETFs and regulatory initiatives: Anticipated approvals and market entry of altcoin ETFs (e.g., efforts by BlackRock and Fidelity) and new regulatory frameworks like the Clarity Act may act as catalysts for altcoin appreciation[3].
  4. Bitcoin dominance shifts: A drop below around 60% Bitcoin dominance historically signals the start of altcoin seasons, when capital flows into alternative coins[2][5]. The current metrics show Bitcoin dominance lingering near this threshold, suggesting that an altcoin rally could gather pace if dominance dips further.
  5. Macro conditions and liquidity: Changes in macroeconomic factors, such as Federal Reserve policies, liquidity tightening, and dollar index movement (DXY), will impact risk appetite and capital flows between Bitcoin and altcoins[3].

While the exact timing and extent of the altcoin season are yet to be predicted[6], some signs are already visible. For instance, the ETH/BTC pair has surged by a whopping 123% from its multi-year low of 0.01766 BTC logged on Apr. 22[6]. Moreover, the ETH/BTC pair recently crossed above its 365-day moving average, according to analytics firm CryptoQuant[4].

However, it's important to note that not everyone agrees with this assumption. Coinbase's report does not necessarily concur with the idea that the next Fed rate cut could potentially mark a local top for Bitcoin[7]. Instead, the report suggests that a likely rate cut could potentially "unlock" a lot of retail capital[7].

As we move towards the anticipated Fed rate cut in September, traders and investors should closely monitor Bitcoin dominance and key regulatory and ETF developments to gauge the altcoin season's potential momentum[8]. The term "local top" refers to a short-term peak in the price of Bitcoin[9].

[1] https://www.coinbase.com/institutional/research/post/crypto-outlook-2025 [2] https://www.forbes.com/sites/adamshamana/2025/08/08/bitcoin-altcoin-season-2025-what-you-need-to-know/?sh=747512f571e5 [3] https://www.coindesk.com/markets/2025/08/09/ethereum-surges-to-2025-peak-as-altcoin-season-takes-shape/ [4] https://cryptoquant.com/trend/btcusd [5] https://decrypt.co/81103/bitcoin-altcoin-season-2025-what-you-need-to-know [6] https://www.coindesk.com/markets/2025/08/15/ethereum-price-jumps-10-in-24-hours-as-altcoin-season-gains-momentum/ [7] https://www.coindesk.com/markets/2025/08/16/coinbase-report-suggests-altcoin-season-but-not-necessarily-the-next-fed-rate-cut/ [8] https://www.newsbtc.com/2025/08/17/altcoin-season-2025-what-you-need-to-know/ [9] https://www.investopedia.com/terms/l/localtop.asp

  1. The potential altcoin season in 2025 could be fueled by institutional inflows, regulatory clarity, and the integration of AI and real-world applications in innovative altcoin projects.
  2. Bitcoin's dominance has dropped from approximately 65% in May to around 59% in August, with some signs already visible of a shift towards altcoins.
  3. Ethereum, a major altcoin, showed remarkable growth as the ETH/BTC pair surged by 123% from its multi-year low, and recently crossed above its 365-day moving average.
  4. To gauge the momentum of the anticipated altcoin season, traders and investors should closely monitor Bitcoin dominance, regulatory and ETF developments, and changes in macroeconomic factors.

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