Bitcoin

Impact

when

Bitcoin’s (BTC) ongoing rise in dominance could face a significant challenge from the U.S. Federal Reserve’s latest rate cut cycle, according to SwissOne Capital, a leading crypto asset management firm.
<h2 id="bitcoin-s-dominance-rate-faces-potential-stall-due-to-fed-rate-cut-cycle-crypto-asset-manager-says">Bitcoin’s Dominance Rate Faces Potential Stall Due to Fed Rate Cut Cycle, Crypto Asset Manager Says</h2>
Historically, BTC dominance and US interest rates have shown a positive correlation, suggesting that further rate cuts could halt the current uptrend in Bitcoin's market share.
Over the past two years, Bitcoin’s dominance has outperformed the broader cryptocurrency market, rising from 38% to 58%. This rise comes as the total digital asset market size has doubled to over $2 trillion, according to TradingView data.
However, SwissOne Capital has identified a key concern: The Federal Reserve's decision to cut interest rates by 50 basis points signals the start of an easing cycle.
According to the firm’s market update, such cycles have previously coincided with declines in BTC’s dominance. The last peak in dominance occurred in the second half of 2019, when Bitcoin’s share exceeded 70%, but then declined as the Fed began its rate-cutting program.
In previous rate cut cycles, particularly during 2019-2021, Bitcoin’s dominance declined as central banks injected liquidity into the global financial system, leading to increased risk appetite and the growth of alternative cryptocurrencies (altcoins).
A similar pattern was observed in the 2022-23 and 2018 rate hike cycles, strengthening the relationship between BTC dominance and the Fed's monetary policy.
“The imminent start of the US rate cut cycle certainly suggests that BTC dominance may face limits on further growth if history repeats itself,” SwissOne Capital said.
The outlook for further rate cuts is supported by the CME's FedWatch tool, which shows investors expect another 25 basis point cut by the end of the year.
*This is not investment advice.
 Continue Reading: <a href="https://en.bitcoinsistemi.com/crypto-asset-management-firm-swissone-capital-explains-possible-impact-of-feds-interest-rate-cut-on-bitcoin-dominance/" rel="noopener noreferrer nofollow">Crypto Asset Management Firm SwissOne Capital Explains Possible Impact of FED's Interest Rate Cut on Bitcoin Dominance!</a>

Crypto Asset Management Firm SwissOne Capital Explains Possible Impact of FED's Interest Rate Cut on Bitcoin Dominance!

Table of Contents

Bitcoin Sistemi EN

Other articles published on Oct 10, 2024

Dogizen price prediction: First Telegram ICO offers parabolic potential

PEPE Price Analysis: How Can PEPE Price Surge 1000% By 2025?

Top Analyst Unveils This ‘Shiba Inu Killer’ As The Most Bullish Coin Of 2024

Binance Secures Regulatory Approval in Argentina, Offering Full Crypto Services to Local Users

Q3 2024 NFT Market Report: Trading Volume Exceeds $1.1 Billion Amid Shifting Landscape

Trending Ethereum Token Block Solana And Arbitrum’s Path With 8,300% ROI Potential

Join our free newsletter for daily crypto updates!