Bitcoin News Today: Coinbase Forecasts Altcoin Surge in Q3 2025 as Bitcoin Dominance Falls to 59%

Coinbase has forecasted that a full-scale altcoin season could begin in September 2025, signaling a potential shift in market dynamics driven by declining Bitcoin dominance and increasing institutional and retail interest in alternative cryptocurrencies [1]. David Duong, Global Head of Research at Coinbase Institutional, attributes this anticipated shift to improving macroeconomic conditions, including rising liquidity and the potential for Federal Reserve rate cuts [2]. These factors are expected to encourage investors to rotate capital away from Bitcoin and into higher-beta assets such as Ethereum and other major altcoins [3].

The firm’s analysis points to a steady decline in Bitcoin’s market dominance, which has fallen from over 65% in May 2025 to approximately 59% by August 2025 [4]. This trend is seen as a key indicator of the broader market’s evolving behavior, with both institutional and retail investors showing greater willingness to diversify their portfolios [5]. Ethereum’s performance has also been highlighted as a leading indicator, with the token gaining approximately 86% in value over the last 90 days [6].

Coinbase’s research team notes that historical patterns suggest altcoin seasons often follow periods of increased macroeconomic liquidity and a contraction in Bitcoin’s dominance. The firm anticipates that similar dynamics may unfold in the coming months, creating favorable conditions for altcoins to outperform [7]. This market rotation could see greater capital inflows into high-risk, high-reward assets, including Solana, XRP, and other Ethereum-based tokens [8].

Analysts at Coinbase also suggest that regulatory clarity and evolving monetary policies may further support the anticipated altcoin season [9]. The firm has emphasized that improved liquidity and shifting investor sentiment are likely to bolster altcoin performance, particularly in the third quarter of 2025 [10].

Source:

[1] Monthly Outlook: Altcoin Season Cometh (https://www.coinbase.com/institutional/research-insights/research/monthly-outlook/monthly-outlook-aug-2025)

[2] Coinbase says a 'full-scale altcoin season' may be just ahead (https://cointelegraph.com/news/current-market-conditions-suggest-shift-towards-a-full-scale-altseason-coinbase)

[3] Altcoin Season Could Begin in September as Bitcoin's Grip on ... (https://finance.yahoo.com/news/altcoin-season-could-begin-september-061652116.html)

[4] Coinbase research head predicts surge in altcoins (https://www.mitrade.com/insights/news/live-news/article-3-1042567-20250815)

[5] Coinbase Predicts Altcoin Surge in Q3 2025 Amid Fed ... (https://www.ainvest.com/news/coinbase-forecasts-altcoin-surge-q3-2025-fed-rate-cuts-rising-liquidity-2508/)

[6] Coinbase Predicts Full-Scale Altcoin Season Could Be ... (https://financefeeds.com/coinbase-predicts-full-scale-altcoin-season/)

[7] Coinbase Signals Altseason Season Ahead as ETH Gains ... (https://www.ccn.com/news/crypto/coinbase-altseason-prediction-september/)

[8] Macro Shifts and BTC Decline Point to Altcoin Season ... (https://coincentral.com/macro-shifts-and-btc-decline-point-to-altcoin-season-says-coinbase/)