Uptrend in Bitcoin's Dominance Rate Threatened by Fed Rate Cut Cycle, Crypto Asset Manager Says
Summary
The U.S. Federal Reserve's recent rate cuts may hinder bitcoin's (BTC) dominance rate, which has risen from 38% to 58% over two years, contributing to the total digital asset market value exceeding $2 trillion. SwissOne Capital indicates limited potential for further increases in BTC's dominance due to the Fed's easing cycle, which historically correlates with declines in dominance rates. The dominance peaked above 70% before decreasing during previous easing cycles. The current BTC dominance is below the previous peak of 73%, attributed to the growth of stablecoins, which now represent nearly 10% of the total market cap. Traders anticipate an additional 25 basis point rate cut by year-end.
