Bitcoin dominates the current market cycle, and although its price has declined in 2025, BTC continues to outperform altcoins by a wide margin. Bitcoin’s market dominance continues to grow, and it seems that for the first time, Bitcoin maximalists are truly proven right.
Matrixport reports that Bitcoin dominance has risen to 61.2%, up from 54% in December.
Brief Resurgence for Altcoins
Following Donald Trump‘s election victory in the US, the altcoin sector experienced a brief recovery. This was due, among other things, to Trump’s promise to introduce more crypto-friendly regulation in the US.
This sparked hopes for the launch of several crypto ETFs. Given the success of Bitcoin ETFs, this was received extremely positively by the market community.
However, the euphoria lasted less than a month, as a stronger-than-expected US jobs report dampened sentiment. Combined with rising inflation, this suddenly led to a tighter monetary policy from the US Federal Reserve, which, according to Matrixport, put an end to the price increases.
Good news on the inflation front?
Yesterday, the market finally recovered somewhat after inflation in the US came in slightly lower than expected.
In theory, this gives the US Federal Reserve some more leeway to cut interest rates. “This marks the first decline in both headline inflation (CPI) and core inflation (Core CPI) since July 2024,” explained The Kobeissi Letter on X.
“Inflation is cooling in the US,” she added.
However, the futures market continues to expect a pause in interest rates at the Federal Reserve’s next interest rate meeting, scheduled for March 19. This means that interest rates will remain at their current levels.
The probability of a rate cut is only 3%, while the remaining 97% favors an unchanged interest rate policy.
Image by Borko Manigoda from Pixabay
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