Coinbase Flags 50% Altcoin Surge, Says Next Crypto Rotation Looms

Coinbase Institutional said a full-fledged “altcoin season” may be imminent after the combined value of non-Bitcoin cryptocurrencies climbed more than 50% since early July. The firm’s research cites accelerating institutional demand for Ethereum, whose growing liquidity has helped lift the broader market and spur a rotation out of Bitcoin.

Ethereum-linked exchange-traded funds pulled in about $640 million during one of their strongest sessions, outpacing Bitcoin funds by more than three-to-one. Lido DAO, a major staking token tied to Ethereum, was among the notable beneficiaries of the rebound. Market participants also point to a rising ETH/BTC ratio, record Google searches for “altcoins,” and speculation that the U.S. Securities and Exchange Commission could soon clear the first altcoin ETFs as additional tailwinds.

Coinbase added that expectations for a Federal Reserve rate cut in September could attract further retail inflows, although the market remains volatile. A hotter-than-anticipated U.S. producer-price reading triggered roughly $900 million in long-position liquidations across digital assets on 15 August, briefly knocking Bitcoin below $119,000 and trimming recent gains in Ethereum and Solana.

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