The research arm of a top crypto exchange says that digital assets may be poised for an end-of-the-year rally.
In a new research report, Bitfinex says that the altcoin market cap may bottom in September before surging again in the fourth quarter as institutional crypto investing remains healthy despite a sudden downturn in digital assets.
“Altcoins have been faring worse [than Bitcoin], reflecting broad risk-off behavior. ETH retreated 14% after briefly posting new ATHs (all-time highs), while XRP, ADA and DOGE saw double-digit losses. Yet, institutional demand remains resilient beneath the surface, with ETH treasuries and corporate buyers continuing to expand holdings. Mid-cap names like CRO and PUMP outperformed via narrative-driven rallies, though this rotation came at the expense of weaker names, not new inflows.
What is emerging is an altcoin market cap that is stagnating, with any movement in alts signaling capital rotation rather than expansion. With ETF (exchange-traded fund) inflows seasonally muted and speculative excess flushed, September could mark the cyclical low point before structural drivers reassert for a Q4 recovery.”
The TOTAL2 chart, which tracks the market cap of all crypto assets excluding Bitcoin (BTC) and stablecoins, is trading for $1.54 trillion, down 5.8% on the week.
The researchers also warn that Bitcoin may reach a local bottom in the $90,000 range, as the flagship crypto asset has historically performed poorly in September.
“Bitcoin has slipped below $110,000, falling below its January 2025 peak of $109,590 and extending its drawdown to over 13% from the all-time high of $123,640. While this breakdown carries technical weight, historical drawdown patterns and seasonality suggest the market is actually in the later stages of its corrective phase, with $93,000-$95,000 emerging as the most probable zone for a cyclical floor.”
Bitcoin is trading for $108,969 at time of writing, up marginally on the day.
