{"id":17496,"date":"2025-03-12T21:01:41","date_gmt":"2025-03-12T21:01:41","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=17496"},"modified":"2025-03-12T21:01:41","modified_gmt":"2025-03-12T21:01:41","slug":"bitcoin-dominance-hits-new-highs-alts-fade-research","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=17496","title":{"rendered":"Bitcoin dominance hits new highs, alts fade: Research"},"content":{"rendered":"
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\"Bitcoin<\/p>\n

Bitcoin\u2019s (BTC<\/a>) dominance has crested new highs as altcoins\u2019 short-lived rally fizzles, according to data from Matrixport, a cryptocurrency financial services platform.\u00a0<\/p>\n

As of March 12, Bitcoin dominance \u2014 a measure of Bitcoin\u2019s share of crypto\u2019s overall market capitalization \u2014 stands at 61.2%, according<\/a> to Matrixport. This is up from a cycle low of around 54% in December.\u00a0<\/p>\n

Rising BTC dominance is \u201cclear evidence that the altcoin rally was short-lived,\u201d Matrixport said in a post on the X platform.\u00a0<\/p>\n

\u201cIt lasted barely a month, from [US President Donald] Trump\u2019s election in November to early December, when a stronger-than-expected U.S. jobs report shifted market focus toward a more hawkish Federal Reserve,\u201d Matrixport said.\u00a0<\/p>\n

Bitcoin\u2019s dominance typically wanes near the end of market cycles as capital rotates into altcoins \u2014 digital assets besides Bitcoin.\u00a0<\/p>\n

\"Bitcoin
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Bitcoin dominance is back. Source: <\/em>Matrixport <\/em><\/a><\/p>\n<\/figcaption><\/figure>\n

Related: <\/strong><\/em>Bitcoin battles US sellers as CPI inflation sees first drop since mid-2024<\/strong><\/em><\/a><\/p>\n

Eyeing interest rates<\/h2>\n

In January, the US Federal Reserve opted to hold interest rates steady instead of starting another round of cuts, citing healthy US jobs data.\u00a0<\/p>\n

The Fed\u2019s hawkish tone dealt a blow to stocks and cryptocurrencies. Bitcoin\u2019s spot price has dropped approximately 20% since the central bank\u2019s Jan. 29 announcement.\u00a0As of March 12, Bitcoin trades at roughly $82,750. It hit an all-time high of more than $109,000 in December.\u00a0<\/p>\n

Altcoins are even more sensitive to macroeconomic volatility than Bitcoin.\u00a0\u201cSavvy traders have rotated out of altcoins and into Bitcoin, which, despite its own decline, has significantly outperformed the broader crypto market,\u201d Matrixport said.\u00a0<\/p>\n

The next leg of Bitcoin\u2019s rally depends largely on whether the Fed opts to hike interest rates to stave off inflation, Matrixport noted.\u00a0<\/p>\n

On March 12, the February Consumer Price Index \u2014 a measure of US inflation \u2014 came in lower than expected at around 2.8%.\u00a0<\/p>\n

\u201cThis marks the first decline in both Headline and Core CPI since July 2024,\u201d The Kobeissi Letter said<\/a> in an X post.\u00a0\u201cInflation is cooling down in the US.\u201d<\/p>\n

Data<\/a> from the CME Group, a US derivatives exchange, indicates that markets overwhelmingly expect the Fed to hold rates steady at its next meeting in March.<\/p>\n

Magazine: <\/strong><\/em>Ethereum L2s will be interoperable \u2018within months\u2019: Complete guide<\/strong><\/em><\/a><\/p>\n