Altcoins are primed for lift-off due to the convergence of fluidity spikes, regulatory clarity, and macro momentum. Coinbase is explosively upside down ahead of September’s acceleration.
According to Coinbase, market set for full Altcoin acceleration with a major shift in September
Coinbase Institutional released its monthly Outlook report on August 14th entitled “Altcoin Season Cometh,” showing the changing market dynamics that can support a wide range of Altcoin Rally by September. David Duong, the company’s global research director, wrote: He added:
We believe the current market situation suggests a potential shift towards a full-scale Altcoin season as we approach September.
The report also highlighted stronger macroeconomic conditions than expected and a clearer regulatory framework as a vital contributor to the improved outlook. The Altcoin Season Index is below the key 75-point threshold, but Altcoin’s market capitalization has risen by more than 50% since early July, reaching $1.4 trillion as of August 12th.
Bitcoin’s advantage fell from 65% in May to 59% by August, indicating an early stage capital turnover into Altcoins. Coinbase pointed to a record $7.2 trillion parked in US money market funds as potential capital that could re-enter the crypto ecosystem if monetary policy became more compassionate. “I think FRED Easing can unlock the increase in retail participation in the mid-term.”
Liquidity metrics, including Stablecoin issuance and spot trading volume, have begun to recover after months of contraction. Coinbase repeats its paper that global M2 money supply tends to precede Bitcoin rallies, suggesting a wider liquidity tail fin.
Ethereum (ETH) has the financial obligations of digital assets, including over 2% of total supply, as digital assets Treasury, such as Bitmine Immersion Technologies and Sharplink Gaming, collectively holds ETH of over 2.95 million. Highly solid tokens tied to ETH including ARB, ENA, OP, and especially LDOs, indicate amplified price action. The LDO rates 58% of the month, with some US Securities and Exchange Commission staff saying that liquid staking does not constitute a securities offering under certain conditions. To conclude the report, Coinbase has strengthened its positive attitude.
Our optimistic view is supported by both macro factors and expected regulatory advancements.
