Bitcoin's domain reaches the new top, Alts Fade: research

The bitcoin domain (btc) has grown new maximums as the Altcoins short duration rally strive, according to Matrixport data, a cryptocurrency financial services platform.

As of March 12, the bitcoin domain, a measure of bitcoin's participation in crypto's general market capitalization, is 61.2%, <a target="_blank" data-ct-non-breakable="null" href="https://x.com/Matrixport_EN/status/1899716912151744554/photo/1″ rel=”nofollow noopener” target=”_blank” text=”null” title=”https://x.com/Matrixport_EN/status/1899716912151744554/photo/1″>according To Matrixport. This is higher than a low cycle of around 54% in December.

The rising btc domain is “clear evidence that the Altcoin rally was short -lived,” Matrixport said in a publication on platform x.

“It lasted just a month, from the election of (president of the United States) of Trump in November at the beginning of December, when a stronger American job report than expected changed the market approach to a more aggressive federal reserve,” Matrixport said.

bitcoin's domain generally decreases near the end of market cycles as capital turns to Altcoins, digital assets in addition to bitcoin.

Related: bitcoin fights US vendors such as IPC inflation sees the first fall since mid -2014

Looking at interest rates

In January, the United States Federal Reserve chose to maintain stable interest rates instead of starting another round of cuts, citing healthy job data in the United States.

The aggressive tone of the Fed hit actions and cryptocurrencies. bitcoin's spot price has dropped approximately 20% since the announcement of January 29 of the Central Bank. As of March 12, bitcoin quote approximately $ 82,750. It reached a historical maximum of more than $ 109,000 in December.

Altcoins are even more sensitive to macroeconomic volatility than bitcoin. “Smart merchants have revolved out of Altcoins and bitcoin, which, despite their own decline, has significantly exceeded the broader cryptography market,” said Matrixport.

The next stage of the bitcoin rally depends largely on whether the Fed chooses to increase interest rates to avoid inflation, Matrixport said.

On March 12, the February consumer price index, a measure of the United States inflation, was lower than expected in around 2.8%.

“This marks the first decrease in the IPC of the title and the main since July 2024”, Kobeissi's letter <a target="_blank" data-ct-non-breakable="null" href="https://x.com/KobeissiLetter/status/1899800273775657058″ rel=”null” target=”null” text=”null” title=”null”>saying In a publication x. “Inflation is cooling in the United States.”

Data From the CME Group, an exchange of American derivatives, indicates that markets overwhelmingly expect the Fed to hold stable rates at its next meeting in March.

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