Matrixport: Bitcoin Dominance Surges As Traders Shift From Altcoins
In Brief
Matrixport’s market analysis highlights Bitcoin’s rising dominance following a brief altcoin rally as traders shift focus, with future growth dependent on a potential liquidity recovery.
Cryptocurrency service provider Matrixport has published a market analysis indicating that Bitcoin’s dominance has reached a new cycle high, exceeding its previous peak. This suggests that the recent altcoin rally was brief, lasting only about a month—from the US presidential election in November until early December—before market sentiment shifted due to a stronger-than-expected US jobs report, which reinforced expectations of a more restrictive monetary policy by the Federal Reserve.
In response, experienced traders have moved away from altcoins and into Bitcoin. While Bitcoin itself has seen a decline, it has still performed better than the broader altcoin market. Looking ahead, optimism is tied to a potential recovery in liquidity that could support Bitcoin’s price. However, with the Federal Reserve expected to maintain its firm stance on interest rates, the next phase of Bitcoin’s upward movement may take longer to materialize.
Bitcoin Rebounds To $82,000 As Market Recovers, Altcoins Follow Suit
At the time of writing, Bitcoin is trading at $82,458, reflecting a 0.81% increase over the past 24 hours. The leading cryptocurrency fluctuated within a range, reaching a low of $79,356 and a high of $83,737 during this period.
Bitcoin’s market dominance also saw a slight increase of 0.13%, reaching 61.19%, which has put pressure on altcoins’ market performance. Analysts are closely monitoring whether the recent announcement of a US strategic Bitcoin reserve could serve as a catalyst for a sustained rally.
Following a period of sharp declines, Bitcoin has regained upward momentum, and several major altcoins—including XRP, Solana, and Ethereum—have followed suit, registering gains of 1% to 7% in intraday trading. However, Ethereum’s performance has been more subdued, with a 0.33% increase in the past 24 hours, bringing its price to $1,907. The cryptocurrency fluctuated between an intraday low of $1,847 and a high of $1,960. Meanwhile, Ethereum’s market dominance has slipped to 8.5%, a notable decline from levels above 9%.
Overall, the cryptocurrency market has grown by 0.68% in intraday trading, bringing the total global market capitalization to $2.67 trillion, according to CoinMarketCap data. Additionally, liquidation volumes from the previous day reached $409.32 million, based on Coinglass data, helping to stabilize prices.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
