The cryptocurrency market might be entering one of its most exciting phases, known as altcoin season. Since early July, altcoins have jumped more than 50%, and Coinbase's analysis suggests that large investors are actively buying Ethereum (ETH), contributing to the rise of altcoins.
Dropping Bitcoin Dominance and Early Signs of Altcoin Season
According to Coinbase research, Bitcoin's dominance has fallen from 65% in May to 59% in August, suggesting a possible shift towards altcoins. The Altcoin Season Index is still at 53, below the 75 mark that indicates the onset of a full alt season.
Impact of Interest Rates and Global Liquidity
Coinbase indicates that the conditions for an altcoin rally seem better than they have in months. A significant factor is the chance that the U.S. Federal Reserve will cut interest rates in September or October. Currently, there is about $7.2 trillion in U.S. money market funds, which could potentially flow into cryptocurrency.
Ethereum in the Spotlight of Investors
The growing interest in Ethereum among large investors is already driving significant market changes. Major Ethereum treasury holders now own nearly 3 million ETH, which is over 2% of the total supply. One major buyer, Bitmine Immersion, purchased 1.15 million ETH and plans to make further acquisitions.
According to Coinbase predictions, September could become a period in which altcoins fully shine, offering more trading opportunities with high risks and profits.
