Omkar Godbole is a Co-Managing Editor on CoinDesk's Markets team.
The recent onset of the Fed rate-cutting cycle poses risk to the uptrend in the BTC dominance rate.BTC's dominance rate, or the cryptocurrency's share in the total market capitalization, has increased from 38% to 58% in two years, according to data source TradingView. In other words, BTC has seen faster gains relative to the wider market, leading the doubling of the total digital asset market value to over $2 trillion.
The metric fell to nearly 40% in late 2021 as central banks worldwide and governments injected trillions into the financial system to cushion against the impact of coronavirus, leading to unprecedented risk-taking in all corners of the financial market, including alternative cryptocurrencies , or tokens other than BTC.
"The recent start of the U.S. rate cutting cycle certainly points to little further upside if history is to repeat itself," SwissOne Capital noted.
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