SwissOne Capital warns that the recent cuts in interest rates by the U.S. Federal Reserve could affect Bitcoin's (BTC) market dominance, which has risen from 38% to 58% in the last two years. Although BTC has performed better than the overall crypto market, its future growth may be limited as the Fed lowers rates by 50 basis points.
Historically, BTC's dominance tends to decrease during periods of rate cuts. Previous data shows that dominance peaked above 70% before dropping when central banks added more money to the market, which boosted altcoins.
With traders expecting another 25 basis point cut by the end of the year, SwissOne Capital believes that BTC's dominance might level off.
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