Bitcoin dominance, or the ratio of BTC market cap to the total cryptocurrency market cap, has a positive correlation with US interest rates. The recent Federal Reserve rate cut cycle may stop the rise in Bitcoin dominance, leading to an increase in the overall cryptocurrency market. In the past, BTC's dominance rose to over 70%, but it turned to a downward trend in the second half of 2019, and fell to 40% at the end of 2021 as quantitative easing continued worldwide. This led to a spike in demand for altcoins other than BTC. BTC dominance has increased over the past two years, but it has not reached its previous high (73%). This is also due to the rapid increase in the supply of stablecoins. A report by SwissOnCapital noted the correlation between interest rates and Bitcoin dominance, and suggested that the recent interest rate cuts could lead to an increase in the altcoin market.

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