Altcoin Rally Deepens as Bitcoin Dominance Drops Below 60%, Markets Eye September Fed Rate Cut
Bitcoin’s share of the crypto market has fallen below 60% for the first time since February 1, signaling a shift in investor interest as altcoins—led by Ether—continue to outperform.
Bitcoin’s market cap currently stands at $2.39 trillion, while total crypto market capitalization has soared to over $4 trillion, marking a fresh all-time high. The last time BTC dominance dipped this low, the asset was trading below $100,000.
Ether (ETH), now above $4,600, has emerged as a primary driver of the rally. The renewed momentum in altcoins comes as markets increasingly price in a near-certain interest rate cut by the U.S. Federal Reserve at its September 17 meeting.
Traders are now assigning almost a 100% probability that the Fed will reduce its benchmark rate to 4.00%–4.25%, amid easing headline inflation and a weakening dollar. The DXY index, which tracks the U.S. dollar against major global currencies, has slipped below 98, further supporting risk asset performance.
Traditional markets are also pushing higher, with both the S&P 500 and Nasdaq 100 reaching record highs this week. However, despite the soft inflation headline, persistent core inflation remains a concern for policymakers, leaving room for uncertainty heading into Q4.
