Bitcoin’s market dominance is climbing. Here’s what that says about interest rate expectations

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Bitcoin's market dominance has been climbing in March and is now up to levels not seen since June.

A crypto asset's "dominance" measures how much of it makes up the total cryptocurrency market cap. Investors use it to determine which parts of the crypto market are outperforming or underperforming relative to their peers. When bitcoin dominance climbs, it implies that bitcoin is doing well, but more specifically, it means its outperforming altcoins. Bitcoin dominance has risen steadily since March 8, the day after Silvergate Bank announced its voluntary liquidation .

Last Sunday, the Fed collaborated with other global central banks to make sure dollars would be available to stem any liquidity concerns in the financial system. Bitcoin rose 3% that day. Also, since the fall of the three U.S. banks, the narrative that bitcoin could be an alternative means of transmitting money or storing wealth has built, Rinko said. "That ... is why we're seeing bitcoin run up and the move only impacting bitcoin as opposed to the rest of the space," Rinko added.

 

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