David Duong, head of research at Coinbase, shared his views on the potential onset of an altcoin season in September. His predictions are based on current market conditions and a growing interest in altcoins.
Signs of an Incoming Altcoin Season
Duong noted that September could mark the beginning of a large-scale altcoin season. In his monthly report, he explained that a clear altcoin month occurs when three-quarters of the top 50 altcoins outperform Bitcoin over 90 days.
Impact of Fed Policies on the Market
Duong believes that Federal Reserve policies could drive investors towards altcoins. He pointed out that a significant amount of capital, totaling $7.2 trillion, is currently held in U.S. money market funds, creating conditions for further growth in cryptocurrency. He also noted that a decline in cash balances in April ignited stronger performance in crypto assets.
Growth of Interest in Altcoins and Their Indices
Duong also pointed out that the rise in altcoin market capitalization and altcoin season indices indicates a technical beginning of an altcoin period. Although the current market capitalization of altcoins has risen above 50%, it has yet to reach 75%, which historically indicates an altcoin season.
Based on analytical data and current trends in financial regulation, September is expected to be a significant period for the altcoin market, attracting investor attention and potentially leading to capital rotations.
