Bitcoin Market Dominance Rises, Evidence That Altcoin Short-Term Rally Is Over

# Bitcoin Market Dominance Hits New High in 2025, Signaling End of Altcoin Rally Bitcoin's (BTC) market dominance has reached a new peak in 2025, leading analysts to conclude that the recent altcoin surge has come to an end. According to a report by Cointelegraph on March 12, Matrixport, a cryptocurrency financial services platform, reported that Bitcoin's market dominance stood at 61.2% as of March 12, up from approximately 54% in December of the previous year. Matrixport noted, "The rise in Bitcoin's dominance is clear evidence that the altcoin rally was short-lived," indicating that the recent surge began following the election of former U.S. President Donald Trump in November and lasted for about a month until early December. A stronger-than-expected U.S. employment report at that time shifted market focus towards a hawkish Federal Reserve (Fed), which was identified as a key driver. Typically, Bitcoin's market dominance declines at the end of a market cycle, as capital flows from Bitcoin to other digital assets, known as altcoins. Altcoins tend to be more sensitive to macroeconomic volatility compared to Bitcoin. Matrixport stated, "Savvy traders have moved their funds from altcoins to Bitcoin," adding, "Despite Bitcoin's downward trend, it has outperformed the overall cryptocurrency market." The next Bitcoin uptrend is likely to be heavily influenced by whether the Fed decides to raise interest rates to curb inflation. The Consumer Price Index (CPI) for February, released on March 12, came in at approximately 2.8%, lower than expected. This marks the first time since July 2024 that both headline and core CPI have declined. According to data from the U.S. derivatives exchange CME Group, the market perceives a high likelihood of the Fed maintaining interest rates at the March meeting. "U.S. inflation appears to be cooling," analyzed The Kobeissi Letter.