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Key Insights:
- The Altcoin season Index climbed to 61, the highest level in 8 months.
- Shifting interest action on the Binance exchange triggered liquidity rotation across multiple significant assets, with Ethereum in the lead.
- Total Altcoin market cap closes above $1 Trillion in August. Altcoins, excluding the top 10 cryptos, replicated the Ethereum price action pattern, suggesting their current market cap could double.
The last quarter of 2025 was nearing, with Q3 only a month away from completion. September has begun with positive momentum, with the last 24 hours seeing a rise of 1.75% in total crypto market cap.
Altcoins that had trailed Bitcoin in the previous four months had traders’ attention. Ethereum, which is usually used to gauge altcoins, has maintained the lead in terms of trading volume against BTC.
This was a clear sign that the altcoin season was in play. However, it is yet to hit the full throttle phase. It’s worth exploring why the altcoin market cap could double soon.
Altcoin Season Index Hits an 8-Month Peak
A look into the Altcoin Season Index on the Coinglass data analysis tool showed that the metric attained an 8-month high. When writing, the index reading reached 61 from 56, only four days ago.
The reading meant that of the top 100 cryptos by market capitalization, 61 were reporting better gains than BTC in the last 90 days. Whales and institutions were quietly loading. This set the stage for the next Altseason per Lucky analysis on X.
However, for a complete Altseason phase, about 75 major coins needed to be stronger than the Bitcoin price in 3 months. The speed at which they outpaced BTC indicated that Altseason could start in September.
The Fed is expected to cut rates this month. This would further increase the capital flow in the overall financial markets.
Interest Shifts Triggers Liquidity Rotation
Regarding liquidity, Major Asset Trade Volume in Binance offered more exciting insights. Being the biggest exchange, Binance saw the most significant shift in interest since 2023, leading to liquidity rotation.
Ethereum’s total volume was about $12.62 trillion, about 3x that of BTC at $4.80 Trillion. Ethereum dominated this shift while most altcoins struggled to keep up with the pace. However, it recorded a volume of $13.66T.
Despite the volume of other Altcoins being larger than that of BTC, it dropped from January 2025 to July. These figures were a clear indication of liquidity rotation.
When writing, the BTC price was $111,509 while the ETH price was $4,357. The disparity in price changes from their recent highs further indicated that capital was flowing from BTC. It’s a potential reason why the price strength was not maintained.
Will Altcoin Market Cap Really Double?
On the charts, the total altcoin market cap excluding Ethereum and stablecoins closed above $1 Trillion. Specifically, it was $1.03 Trillion for August, per the Ash Crypto post, which predicted a huge Q4 for Alts.
The total market cap for crypto, excluding the top 10 and all stablecoins, also exceeded Ethereum’s weekly price chart. Ethereum experienced an explosive 48% rally in July.
Imitating this, the altcoin market is poised for a breakout after consolidating below the 0.5 Fibonacci retracement level. If momentum builds, the total altcoin cap could double, echoing Ethereum’s bullish surge. The only question was when this would play out.
According to the projections by the CryptoBullet analysis, a doubling of the market could happen between now and November. This aligned with many analysts’ broader crypto market predictions.
They anticipate a run if the Fcutscut rates from September to the next 6 months. Analysts believe President Trump’s pro-crypto stance could still energize market sentiment without a Fed rate cut.
His aggressive push for lower rates and bold economic moves may drive investor optimism regardless of central bank action. This was already evident from his calls for Jerome Powell to lower rates.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
