The Altcoin Season Index, a key indicator tracking whether the majority of top altcoins are outperforming Bitcoin, is now rebounding from multi-cycle support, pointing toward the possibility of a full-scale phase three rotation as early as the end of August.
FBS notes that this cycle is different from previous retail-driven spikes. This time, crypto hedge funds, corporate treasuries, and traditional market makers are leading the rotation — reallocating strategically from large-cap tokens into high-beta assets. Based on market structure and liquidity trends, analysts highlight Solana (SOL), Chainlink (LINK), and Hyperliquid (HYPE) as three altcoins with strong momentum and significant upside potential.
Macro conditions are further driving the trend. Cooling US inflation, slowing job growth, and expectations of upcoming Federal Reserve rate cuts could inject more liquidity into the market — a historically explosive catalyst for altcoins. The global M2 money supply, a key measure of liquidity, is also rising at its fastest pace since early 2021, creating favorable conditions for risk assets.
“Altseason isn’t just approaching — it’s already in motion,” FBS analysts say.
Disclaimer: This material does not constitute a call to trade, trading advice, or recommendation and is intended for informational purposes only.
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