Bitcoin dominance reaches 61% as altcoins lose momentum

Bitcoin’s (CRYPTO:BTC) market dominance has climbed to 61.2% as of March 12, reflecting its resilience amid macroeconomic uncertainty, according to research from Matrixport.

This marks a significant rise from its cycle low of 54% in December, highlighting the fading rally of altcoins in recent months.

Matrixport attributed the brief altcoin surge to market optimism following U.S. President Donald Trump’s re-election in November 2024.

However, this rally was short-lived, ending in early December when a stronger-than-expected U.S. jobs report shifted focus toward the Federal Reserve’s hawkish monetary policy.

Bitcoin dominance typically peaks during these periods, as traders rotate capital away from altcoins into Bitcoin due to its relative stability.

Bitcoin itself has not been immune to market pressures, with its price dropping approximately 20% since the Federal Reserve held interest rates steady in January.

Despite this decline, Bitcoin has outperformed altcoins, which are more vulnerable to macroeconomic volatility.

The February Consumer Price Index (CPI) report showed inflation cooling to 2.8%, marking the first decline in both headline and core CPI since July 2024.

This has led market participants to anticipate that the Federal Reserve will hold interest rates steady at its next meeting, potentially providing relief to risk assets like cryptocurrencies.

Analysts suggest that Bitcoin’s next rally will depend on whether the Federal Reserve opts for further rate hikes or maintains its current stance.

Meanwhile, Ethereum (CRYPTO:ETH) and other altcoins continue to struggle against Bitcoin’s dominance, with many pairs reaching new lows in recent months.

Historically, altcoin rallies follow strong Bitcoin bull runs but require specific conditions such as declining Bitcoin dominance and favorable macroeconomic trends.

As of now, the crypto market remains heavily weighted toward Bitcoin, delaying any significant altseason until broader sentiment shifts.

At the time of reporting, the Bitcoin (BTC) price was $83,435.57.