Why September Could Be a Turning Point

MetaCryptoDesk analysts note that the crypto market is entering a cyclical transition phase where capital moves away from Bitcoin as its dominance softens, giving altcoins room to outperform.

Key drivers behind this expectation include:

• Falling Bitcoin dominance – Bitcoin’s share of the total crypto market has shown signs of easing after reaching yearly highs earlier. Historically, when dominance declines, capital rotates first into large-cap altcoins like Ethereum (ETH) and Solana (SOL), then into mid- and small-cap tokens.

• Stronger liquidity for altcoins – Exchange data shows tighter spreads and deeper order books, making it easier for traders to buy and sell altcoins without significant slippage. This improved trading environment attracts institutional players who previously avoided smaller tokens.

• Investor risk appetite returning – With global markets stabilizing and crypto volatility contained, traders are increasingly seeking higher returns in alternative digital assets rather than relying solely on Bitcoin.

How the Cycle Typically Unfolds

Past market cycles suggest that blue-chip altcoins usually lead the charge, followed by smaller-cap assets as momentum builds. MetaCryptoDesk emphasizes that the length and strength of this rotation will depend on overall market conditions, liquidity levels, and broader macroeconomic factors.

Market Performance Snapshot

So far in 2025, Bitcoin has gained 27.2%, but several altcoins are outperforming. Ethereum has risen 37.9%, while XRP has surged 49%. Others show mixed trends, with Solana up 1.67%, Cardano adding 8.96%, and Dogecoin dropping by 27.5%.

Given the current setup, MetaCryptoDesk believes that altcoins could enter a strong rally starting in September, with the potential for momentum to continue into the year-end if liquidity remains robust and investor sentiment stays positive.