The cryptocurrency market has registered a clear signal of significant changes in investor behavior, with a rotation of capital that could announce the arrival of a new “Altseason.”
This market stage, characterized by the strong impulse of cryptocurrency, not Bitcoin (BTC), appears to take shape as September approaches. Historically positive period of digital assets.
Over the past few months, bitcoin dominance in the cryptocurrency market has shown a downward trend. According to data from TrainingView, of the 65% recorded in May and June this year, it fell to about 59% on August 15th this year.
This decline coincided with rebounds from other cryptocurrencies, particularly Ethher (ETH). This rose to $4,780 this week, approaching the last-lasting US$4,891 in November 2021.
For Coinbase, the largest exchange analyst in the US, the move could replace capital rotations towards other cryptocurrencies. What are the clear signs of the beginning of the alto season?in their opinion.
Coinbase is based on CoinmarketCap’s AltSeason index, which is currently 42 points, suggesting that the Altcoins season is still far away.
However, they highlighted the growth in cryptocurrency capitalization (not counting Bitcoin). It’s been over 50% since the beginning of Julyas clearly seen in the next Coingcko graph, it reached $1.2 billion to $1.4 billion in mid-August.
Taking into account the previous company, it stood out from it:
“As we approach September, we believe the current market situation is beginning to show potential for a massive alternative season.”
Coinbase, cryptocurrency exchange.
Like encrypted encryption in crypto environments, Altseason is a term used in the cryptocurrency market, describing the period in which cryptocurrency surpasses Bitcoin itself and significantly increases its value and performance.
Macroeconomic and regulatory factors, such as drivers
Several macroeconomic and regulatory factors have influenced this market turn. Coinbase highlights that since last fall of Bitcoin’s dominance, the cryptocurrency market has been gaining a significant increase in interest. And liquidity offers are beginning to recover.
They remember that from that vomit, they remember the increase in the world’s money supply (M2) It usually directly affects the price of Bitcointhe distance range is approximately 110 days. In the following graphic BGEOMERTICS, we see that BTC closely follows the movement of the global M2.
In that order of ideas, Coinbase analysts forecast a new wave of potential global liquidity at the end of the third quarter of the year, as well as fourth quarter principles. Bitcoin and, as a result, will benefit cryptocurrency.
Now, from Coinbase, they are clear about capital turnover into cryptocurrency, but make it clear, The market has yet to reach a massive alto season.
But they believe that liquidity recovery, coupled with expectations for a US Federal Reserve cut in interest rates in September and October, could force investors to transfer funds to higher risky assets, such as cryptocurrencies.
In the opinion of analysts, it could accelerate the transition to a full AltS season, especially if institutional investors feel accustomed to the regulatory framework of digital assets.
Cryptocurrency acquisition and growth opportunities
Historically, the Alto Season has provided great profit opportunities for investors. At these stages, cryptocurrencies often fly at a considerable price as capital moves towards assets. They are increasing the likelihood of gratitude in connection with Bitcoin.
This phenomenon occurs in part as retail investors seek alternatives with lower market cap potential as institutional capital tends to be concentrated in BTC.
Altcoins such as Solana (Sol), Dogecoin (Doge), and other lower capitalized cryptocurrencies have begun to show related increases in recent weeks. For example, SOL rose 14% last month, while DOGE rose 11.9% over the same period, coinciding with the time when BTC experienced left and right between US$110,000 and $120,000.
In that sense, last month’s decline in Bitcoin domination and cryptocurrency strengthening marks the start of a possible ort season. The current conditions do not yet suggest a full AltSeseason, but suggest that this period may be about to take off, and market signs supported by macroeconomic and regulatory factors suggest that capital turnover to other cryptocurrencies is merely the beginning.
