SwissOne Capital: Bitcoin's market share has limited room for growth during the Fed's rate cut cycle

Crypto asset manager SwissOne Capital said the Fed’s rate-cutting cycle could hinder the continued upward trend of Bitcoin’s (BTC) market share, leading to broader gains for the entire crypto market. According to TradingView data, Bitcoin’s market share, or its share of the total cryptocurrency market value, has risen from 38% to 58% in two years. In other words, Bitcoin’s gains have been faster relative to the market as a whole, driving the total digital asset market value to double to more than $2 trillion. SwissOne Capital said that due to the Fed’s recent 50 basis point rate cut, which kicked off the so-called easing cycle, Bitcoin’s market share has limited room to rise further. “Bitcoin’s market share is positively correlated with the U.S. federal funds rate,” SwissOne Capital noted in a market update, noting that Bitcoin’s market share fell during previous rate-cutting cycles. SwissOne Capital noted: "If history repeats itself, the recently started rate cut cycle in the United States undoubtedly indicates that Bitcoin's market share has little room to rise further." SwissOne Capital said: "With stablecoin market capitalization approaching 10% of the total market capitalization, we believe this explains why Bitcoin's market share may peak between current levels and 60% (maximum), followed by a major reversal." (CoinDesk)