Bitcoin News Today: September 2025 Could Mark Altcoin Season’s Awakening as Bitcoin’s Grip Slips

Bitcoin's market dominance has shown signs of a potential decline, with some analysts suggesting it could fall to between 44–42% in the near future. This shift, following the cryptocurrency breaking out of a long-term trading channel, has raised speculation that it may signal the beginning of an altcoin rotation phase in 2025. Institutional analysts at Coinbase, in particular, have noted that Bitcoin’s dominance has been trending downward and is currently below the 50% psychological level, a threshold historically associated with altcoin outperformance [1].

Coinbase Institutional’s August report highlights that this trend could indicate a reallocation of capital from Bitcoin into mid- and low-cap digital assets. Key indicators include declining Bitcoin trade volumes, stagnant price movements relative to layer-1 and DeFi tokens, and increased interest in Ethereum (ETH) and other high-beta assets. The report notes that risk appetite appears to be returning to the market, suggesting that capital may soon shift toward alternative crypto assets [1].

On-chain data further supports this narrative. Exchange outflows for ETH and selected altcoins have been rising, pointing to accumulation. At the same time, total value locked (TVL) in DeFi protocols has been growing, particularly on non-Bitcoin chains. Developer activity is also increasingly concentrated in altcoin ecosystems such as Arbitrum, Avalanche, and Cosmos [1]. These metrics historically align with patterns observed before altcoin seasons, such as those seen in early 2017 and late 2020 to early 2021. If September 2025 follows a similar trajectory, it could lead to a resurgence in Layer 2 scaling solutions, cross-chain interoperability projects, and niche sectors like real-world assets (RWAs) and AI-driven crypto platforms [1].

Despite these encouraging signals, several risks remain. Regulatory uncertainty, particularly in the U.S., continues to weigh more heavily on altcoins than on Bitcoin. Liquidity is also fragmented, with certain tokens vulnerable to sharp price declines. Additionally, Bitcoin ETF flows continue to attract institutional capital, potentially slowing the rotation into altcoins [1]. However, Coinbase Institutional maintains a cautiously bullish stance, noting that if liquidity remains supportive and Bitcoin consolidates its price, altcoins could outperform in the fourth quarter.

For institutional investors and fund managers, diversification beyond Bitcoin is being advised as a prudent strategy in the coming months. Exposure to Ethereum, DeFi governance tokens, and ecosystem plays in networks like Solana and Cosmos could offer asymmetric upside if an altcoin season materializes. Derivatives traders, too, may find opportunities in ETH/BTC pairs and altcoin perpetuals as the market rotates [1]. While an altcoin season is not guaranteed, the conditions outlined by Coinbase suggest that September could mark a significant inflection point for the crypto market.

Source:

[1] Altcoin Season on the Horizon: September Shift Expected as Bi... (https://www.publish0x.com/digital-assets/altcoin-season-on-the-horizon-september-shift-expected-as-bi-xjyjgdw)

[2] Bitcoin Price Settles at $115K After Trump-Zelenskyy Meeting... (https://cryptopotato.com/bitcoin-price-settles-at-115k-after-trump-zelenskyy-meeting-okb-eyes-new-ath-market-watch/?amp)