Coinbase announced the likely start of the alt season in September

Coinbase has published a quarterly report in which it assessed the prospects for the crypto market as "constructive" and admitted that the full-scale growth of altcoins could begin as early as September. According to analysts, bitcoin's market share decreased from 65% in May to 59% in August from July.

A special emphasis is placed on Ethereum. Coinbase notes that institutional interest in ETH continues to grow: there are already 2.95 million ETH on the balance sheet of companies that own crypto reserves, which is over 2% of the total supply of the coin. At the same time, institutional investors still prefer large assets, while retail traders remain the main driver of demand for smaller altcoins.

Coinbase's forecast is based on macroeconomic factors and possible shifts in regulation. The key indicator is the growth of global liquidity, which, according to the company's calculations, may start at the end of the third or beginning of the fourth quarter. This is facilitated by the dynamics of the M2 money supply and the record $7 trillion accumulated in the accounts of money market funds in the United States.

Coinbase believes that a possible Fed rate cut as early as September could reduce the attractiveness of low-risk instruments and push part of the capital to move to riskier assets, including cryptocurrencies.