TechFlow news — Cryptocurrency asset management firm SwissOne Capital stated that the Federal Reserve's (Fed) interest rate cut cycle could prevent a sustained rise in Bitcoin's (BTC) market dominance, potentially bringing broader gains to the crypto market.
In a market update, SwissOne Capital noted, "Bitcoin dominance is positively correlated with the federal funds rate," pointing out that during previous easing cycles, Bitcoin's dominance declined. With the Fed's recent 50 basis point rate cut marking the beginning of what is known as an accommodative cycle, there may be limited room for further increases in BTC's dominance.
Historical data charts show that Bitcoin's dominance once peaked above 70%, and began declining as the easing cycle started in the second half of 2019.
