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Is Bitcoin dominance coming to an end?

Bitcoin dominance is currently very strong, but how long will that last?

By Mike Hesp
• 2 min read
Is Bitcoin dominance coming to an end?

Bitcoin dominance is currently very strong, but how long will it stay that way?

According to a View post on X, an altcoin season could be coming soon. SwissOne Capital says that "the dominance of Bitcoin is positively correlated with the interest rate of the Fed." In other words, if rates fall, Bitcoin dominance tends to drop as well.

The U.S. central bank (the Fed) recently cut rates by 50 basis points. "If history rhymes, the recent rate cut in the US will likely mean there’s little room for further growth in Bitcoin dominance," says SwissOne Capital. Right now Bitcoin dominance sits around 58 percent.

SwissOne Capital expects Ethereum to benefit most from a drop in Bitcoin dominance. "The market is underestimating Ethereum's potential, but we think the opposite is true."

"Ethereum remains a crucial backbone for DeFi (decentralized finance). It supports many different decentralized applications (dApps), while its own cryptocurrency, ETH, handles transactions and smart contracts across the network," the report states.

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