Coinbase Anticipates Altcoin Surge in Q3 2025

Coinbase has expressed optimism for Q3 2025, anticipating a potential altcoin season driven by macroeconomic factors and a Federal Reserve rate cut as September nears.

This potential altcoin shift could significantly impact top cryptocurrencies and signal increased retail participation, emphasizing the influence of current monetary and macroeconomic conditions on crypto markets.

Federal Reserve and Retail Liquidity Influence Altcoin Outlook

In August 2025, Coinbase announced a positive outlook for the upcoming third quarter. Based on recent market activities, they anticipate an altcoin season might be underway. The company cites the Federal Reserve’s easing policies as pivotal factors influencing this forecast. Substantial retail capital remains parked in money market funds, with the potential to flow into altcoins.

Signs of a shifting market continue as altcoins gain traction. Coinbase highlights a macroeconomic shift potentially catalyzed by the Federal Reserve’s September actions, indirectly leading to increased retail investor ardor. Data from August corroborates increasing altcoin movements, observed through declining Bitcoin dominance and surging altcoin capitalization.

David Duong, Head of Institutional Research, Coinbase, stated, “Our optimistic outlook stems from a comprehensive macroeconomic perspective and anticipation of significant regulatory developments. As we’ve previously explained, our proprietary global M2 money supply index, which typically leads Bitcoin prices by 110 days, suggests a potential new wave of liquidity could arrive in late Q3 or early Q4 2025.” (source)

Historical Patterns Suggest Promising Gains for Altcoins

Did you know? In 2021, a similar Federal Reserve announcement preceded a significant crypto bull run, marked by Ethereum and Bitcoin reaching record highs. This historical pattern lends credibility to current altcoin projections seen by Coinbase.

As per CoinMarketCap, Ethereum (ETH) trades at $4,642.68 with a market cap of approximately $560.41 billion. Ethereum’s price changed over 90 days by 86.86%. Despite slight daily decreases, its impressive growth trajectory over months hints at an aligning pattern with altcoin projections.

Experts from Coincu suggest that this market environment could foster new opportunities for top altcoins and DeFi projects. Such conditions depend on historical regulatory trends and an increase in retail participation rates, anticipating technological innovations as catalysts for sustained market shifts.