Bitcoin Dominance Hits an All-Time High, Leaving Altcoins Bleeding Out

The cryptocurrency world is buzzing with excitement as Bitcoin is currently reigning supreme in the market cycle. Despite a dip in its price throughout 2025, BTC continues to outshine altcoins by a landslide. The market dominance of Bitcoin is climbing higher and higher, and it looks like those die-hard Bitcoin maximalists might finally be onto something—dare we say, they’re doing a victory dance!

According to reports from Matrixport, Bitcoin’s dominance has soared to an impressive 61.2%, a significant jump from the 54% it held back in December. It’s like Bitcoin decided to throw a party and invited everyone—except the altcoins!

A Brief Respite for Altcoins

Following Donald Trump’s election victory in the United States, the altcoin sector enjoyed a fleeting moment of glory. This brief revival was fueled by Trump’s promises, including the tantalizing prospect of introducing more crypto-friendly regulations in the U.S. It was as if altcoins were given a temporary VIP pass to the financial spotlight!

This sparked hopes of launching multiple crypto ETFs, a move that the market community greeted with wild enthusiasm, especially after the roaring success of Bitcoin ETFs. For a hot minute, it felt like altcoins were ready to strut their stuff on the global stage.

However, the euphoria lasted less than a month before an unexpectedly robust U.S. jobs report rained on the parade. Coupled with rising inflation once again, this led to a sudden tightening of monetary policy by the U.S. Federal Reserve. According to Matrixport, this shift effectively put the brakes on the altcoin rally, leaving them gasping for air.

Good News on the Inflation Front?

Yesterday, the market finally caught a breather as U.S. inflation figures came in lower than anticipated, giving investors a reason to cheer. It’s like the economy decided to throw us a surprise party with a slightly less spicy inflation cake!

Theoretically, this gives the U.S. Federal Reserve a bit more wiggle room to consider interest rate cuts. “This marks the first decline in both overall inflation (CPI) and core inflation (Core CPI) since July 2024,” explained The Kobeissi Letter on X, sounding almost as relieved as we are.

“Inflation is cooling in the U.S.,” they added, with a hint of optimism that could warm even the coldest crypto heart.

Yet, for the next U.S. Federal Reserve interest rate meeting scheduled for March 19, the futures market still predicts a rate pause. This means interest rates will likely stay put at their current levels, leaving us in suspense.

The odds of an interest rate cut are a mere 3%, while a whopping 97% chance points to the status quo remaining unchanged. It’s like the Fed is saying, “Not today, crypto enthusiasts!”