Bitcoin Dominance Nears 60% as Altcoins Lag
Bitcoin dominance is rising while USDT loses ground; traders are shifting back into risk, with U.S. labor market data as the next test.
Key Takeaways
- Bitcoin rose above $86,000 on Thursday and outperformed Ether, XRP, Solana, and BNB.
- Bitcoin dominance is creeping toward 60%, while USDT's share has fallen back to about 6.3%.
- Investors are watching U.S. labor market data and interest rate expectations, which are affecting risk appetite in the crypto market.
Bitcoin rose above $86,000 (€76,100) on Thursday, leaving the broader crypto market behind. Ether, XRP, Solana, and BNB also moved higher, but they clearly lagged Bitcoin. Meanwhile, Bitcoin dominance is creeping toward 60%, while USDT's share has fallen back to about 6.3%. That suggests traders are taking on more risk again and keeping less cash on the sidelines.
Bitcoin Pulls the Market Along
Around 9:10 UTC, Bitcoin was trading above $86,000 (€76,100), up 3.4% in 24 hours. Ether was at $2,749.68 (€2,430) and also moved higher, along with XRP, Solana, and BNB, but none of those coins kept up with Bitcoin's pace. Farther out in the market, the moves were even bigger: SKY, AAVE, and APT rose 7% to 10% and were among the strongest gainers in the top 100 coins.
The shift is visible in the market's balance. Bitcoin is once again taking up a bigger share of the total crypto market, while USDT is losing ground. In earlier market cycles, Bitcoin dominance above 60% often went hand in hand with weaker performance from altcoins, because capital then stayed in Bitcoin longer.
The derivatives market also shows that traders are taking on more risk again. Open interest in Bitcoin derivatives rose as the price moved above $86,000 (€76,100) ahead of the U.S. jobs report.
Eyes on U.S. Data
Investors are now mainly watching U.S. labor market data. Nonfarm payrolls are expected at 8:30 a.m. ET, and the market is looking for 90,000 new jobs in September, down from 162,000 in August. Unemployment is expected to come in at 4.1%.
Interest rate expectations are also part of the picture. Market participants now see a 30% chance of an interest rate hike in October, down from 70% earlier, after softer comments from New York Fed President John Williams and Fed Vice Chair Philip Jefferson. Lower expectations for a rate hike are usually good for risk assets like Bitcoin, although a strong upside surprise in the jobs report could change that picture again.
Why This Matters for Europe
For European crypto followers, the key point is that broad market risk appetite is shaped not just by crypto itself, but also by U.S. rates and macro data. If Bitcoin keeps gaining market share, that could temporarily come at the expense of altcoins, which could also show up on European trading platforms. The combination of higher Bitcoin dominance and a falling USDT share shows that the market is less defensive right now than it was earlier this year.
