{"id":9678,"date":"2025-09-03T16:08:07","date_gmt":"2025-09-03T16:08:07","guid":{"rendered":"https:\/\/bitunikey.com\/news\/altcoins-gain-as-bitcoin-dominance-falls-to-57-fed-narrative-fading\/"},"modified":"2025-09-03T16:08:13","modified_gmt":"2025-09-03T16:08:13","slug":"altcoins-gain-as-bitcoin-dominance-falls-to-57-fed-narrative-fading","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/altcoins-gain-as-bitcoin-dominance-falls-to-57-fed-narrative-fading\/","title":{"rendered":"Altcoins gain as Bitcoin dominance falls to 57%: Fed narrative fading?"},"content":{"rendered":"<div class=\"post-detail__content blocks\">\n<p class=\"is-style-lead\">According to Binance Research, altcoins are the main beneficiaries of potential Fed rate cuts. Bitcoin, not so much. <\/p>\n<div id=\"cn-block-summary-block_abdc294d22ba25afc97cdfb8834533ca\" class=\"cn-block-summary\">\n<div class=\"cn-block-summary__nav tabs\">\n        <span class=\"tabs__item is-selected\">Summary<\/span>\n    <\/div>\n<div class=\"cn-block-summary__content\">\n<ul class=\"wp-block-list\">\n<li>Bitcoin dominance is falling, suggesting a rotation into altcoins.<\/li>\n<li>Top altcoins significantly outperformed Bitcoin in August.<\/li>\n<li>Expectations of Fed policy change are boosting risk-on sentiment.<\/li>\n<\/ul><\/div>\n<\/div>\n<p><!-- .cn-block-summary --><\/p>\n<p>Macroeconomic changes are boosting altcoins, while Bitcoin (BTC) wavers. A September <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.binance.com\/en\/research\/analysis\/monthly-market-insights-2025-09\" target=\"_blank\">report<\/a> from Binance Research shows that Bitcoin\u2019s dominance fell to 57.3%, while Ethereum\u2019s dominance rose to 14.2%. This reflects a broader market rotation toward altcoins, likely caused by the anticipation of September rate cuts by the Federal Reserve.<\/p>\n<p>The market typically sees rate cuts as a bullish sign for Bitcoin. However, according to Binance Research, historical data do not support that view. The correlation between Bitcoin\u2019s price and Fed interest-rate expectations is both low and highly volatile.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<figure class=\"wp-block-image size-full\"><figcaption class=\"wp-element-caption\">BTC price and rate cut expectations historical correlation | Source: Binance Research<\/figcaption><\/figure>\n<p>Instead, the relationship between BTC price and interest rates is more complex. Since rate cuts are likely already priced in, the driver for Bitcoin\u2019s price is how these expectations change. Critically, the market will react to whether the Fed\u2019s decision differs from what is already priced in.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<h2 class=\"wp-block-heading\">Why altcoins outperformed Bitcoin<\/h2>\n<p>This also shows up in relative price performance between Bitcoin and altcoins. In August, out of the top ten altcoins, only one underperformed Bitcoin, which declined 8% in that period. Meanwhile, Ethereum (ETH) rose 18.6%, thanks to accumulation from both institutions and retail. ETF inflows and corporate treasury accumulations were the main contributing factors to Ethereum\u2019s performance.<\/p>\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"639\" height=\"253\" src=\"https:\/\/bitunikey.com\/news\/wp-content\/uploads\/2025\/09\/1756915687_477_Altcoins-gain-as-Bitcoin-dominance-falls-to-57-Fed-narrative.png\" alt=\"Monthly price performance for the top 10 crypto assets by market cap\" class=\"wp-image-14411810\"><figcaption class=\"wp-element-caption\">Monthly price performance for the top 10 crypto assets by market cap for August | Source: Binance Research<\/figcaption><\/figure>\n<p>At the same time, Solana (SOL) rose 15.5% due to a mix of institutional interest and technical updates. For one, SOL corporate treasuries started to gain momentum, while the Alpenglow upgrade boosted overall market sentiment.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>According to Binance Research, altcoins are the main beneficiaries of potential Fed rate cuts. Bitcoin, not so much. Summary Bitcoin dominance is falling, suggesting a rotation into altcoins. Top altcoins&hellip;<\/p>\n","protected":false},"author":1,"featured_media":9679,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-9678","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/9678","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=9678"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/9678\/revisions"}],"predecessor-version":[{"id":9680,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/9678\/revisions\/9680"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/9679"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=9678"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=9678"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=9678"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}