“Coinbase Expects Falling Bitcoin Dominance, Improving Liquidity and Renewed Investor Appetite to Shift Gains Gains Town Altcoins Starting in September.”, – WRITE: www.coindesk.com
Altcoin Season Refers to A Market Phase WHEN Cryptocurrencies Other What Bitcoin-Often Led by Ethereum’s Eth, Solana’s Sol, and Other Large-Cap tokens-Post SIGN. BTC Over A Sustaned Period.
The aug. 14 Report, Authored by David Duong, Coinbase’s Global Head of Research, Identifies Three Main Drivers: Falling Bitcoin Market Dominance, Improving Liquing and Growing Invest in Higher-Beta Assets. Duong Frames this as A Cyclical Transition, with Capital Moving Down The Risk Curve As Market Confidentnce Builds.
Bitcoin Dominance – ITS Share of Total Crypto Market Value – HAS SHOWN SIGNS OF SOFETNING AFTER PEAKING EARLIER THIS YEAR. Coinbase Argues that as this Measure Declines, Capital Historically Flows Into Large-Cap Altcoins, and Ten Into Mid- and Small-Cap Names. This Rotation Effect, They Suggest, Will Become More Pronounced in September.
Liquidity Trends Are Also Turning More Favorable for Altcoins. Coinbase Notes Tighter Bid -Ask Spreads and Deeper Order Books Across Majoor Exchanges, Making IT Easier for Traders to Enter and Exit Altcoin Positions Without Incurving Heavy Slipppage. IMPROVED LIQUITY OFTEN ENCOurages Participation from Larger Players WHO MIGHT OtherWise Avoid Less-Traded Tokens.
The Third Factor Is Sentiment. Duong writes that as macro conditions stabilize and volatility remains Contained, Investors Are More Likely to Seek Higher Returns in Riskier Crypto Assets. This Environment Could Foster Sustaned Inflows Into The Altcoin Market, Particularly if Bitcoin’s Price Consolidates Racher Than Surages to New Highs.
Coinbase Stops Short of Precating WHICH TOKENS WILLS LEAD The CARGE BUT HIGHLIGHTS The PATTERN FROM PREVIOUS MARKET CYCLES, WHERE BLUE-CHIP ALTCOINS OUTPERMED FIRST, FIRST. The report caating that kind of september May Mark The Start, the Duration and Magnitude of the Move Will Depend on the Both Market and Macroeconomic Conditions.
BTC IS UP 27.2%Year-to-Date But Has Trailt Some Major Altcoins Such as Eth (+37.9%) and Xrp (+49%), While Ohers Like Sol (+1.67%), ADA (+8.96). lagged. Coinbase Maintains that Market Conditions Overall Could Favor A Broader Rotation Into Altcoins in the Coming Months.
Ether Traders Took The Biggest Hit, with $ 348.9 Million Liquidated, Followed by Bitcoin at $ 177.1 Million. Solana, XRP, and Dogecoin SAW $ 64.2 Million, $ 58.8 Million, and $ 35.8 Million in Liquidations, Respectvely.
- Over $ 1 Billion in Levered Crypto Positions Were Liquidated After Urdated US Inflation Data.
- Bitcoin Hit A Record High Above $ 123,500 Before a Sharp Sell-Off Erassed $ 866 Million in Long Positions.
- Traders Are Closely Monitoring US Economic Data and Federal Reserve Signals for Future Market Direction.
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