2025-03-13
Bitcoin’s share of the cryptocurrency market has reached 62.24%, its
highest level in months, as altcoins lose momentum.
www.tradingview.com/symbols/BTC.D/
Bitcoin’s Market Strength
Despite falling from its peak price in December, Bitcoin is still
performing better than most other cryptocurrencies.
Its dominance was at 54% in December but has since climbed, showing
that the recent altcoin rally was short-lived.
Altcoins briefly gained ground after Donald Trump’s election win in
November. However, a strong U.S. jobs report in early December shifted focus to
the Federal Reserve, leading investors back to Bitcoin.
The Impact of Interest Rates
In January, the U.S. Federal Reserve decided to keep interest rates
unchanged instead of cutting them.
This decision, based on strong jobs data, negatively affected stocks
and cryptocurrencies.
Since the Fed’s announcement on January 29, Bitcoin’s price has
dropped about 20%, now trading around $83,335 (down from an all-time high of
over $109,000 in December).
Altcoins, which tend to react more to economic changes, have
suffered even more. Investors have shifted their money into Bitcoin, which,
despite its decline, has outperformed the broader crypto market.
What’s Next for Bitcoin?
One of the factors is Bitcoin’s rally depends on whether the Fed
raises interest rates to control inflation.
Recent inflation data suggests prices are cooling, with the Consumer
Price Index (CPI) dropping to 2.8% in February.
According to data from the CME Group, most investors expect the Fed
to keep rates unchanged at its next meeting in March.
