Bitcoin dominance has reached new highs as the short-lived altcoin rally has come to an end, according to data from cryptocurrency financial services platform Matrixport.
As of March 12, Bitcoin’s dominance stands at 61.2%, surpassing the December level of around 54%.
The increasing dominance of BTC is clear evidence that the altcoin rally was short-lived.
“It lasted only a month — from Trump’s election in November to early December, when a stronger-than-expected U.S. employment report shifted market focus toward a more hawkish Federal Reserve stance,” Matrixport noted.
Typically, Bitcoin dominance weakens at the end of market cycles when capital flows into altcoins — digital assets other than Bitcoin.
The Fed’s hawkish stance has hit stocks and cryptocurrencies hard: following the central bank’s statement on January 29, Bitcoin’s spot price dropped by approximately 20%. As of March 12, Bitcoin is trading at around $82,750, whereas in December, it reached an all-time high of over $109,000.
“Savvy traders have shifted from altcoins to Bitcoin, which, despite its own decline, is significantly outperforming the broader crypto market,” Matrixport analysts stated.
The next stage of the digital gold rally largely depends on whether the Fed decides to raise interest rates to curb inflation.
