Matrixport: Bitcoin dominance hits a new cycle high, seasoned traders have rotated back to Bitcoin from altcoins

ChainCatcher news, Matrixport released today's chart showing that Bitcoin's dominance has surged to a new high for this cycle, breaking the previous peak to reach 61.2%, clearly indicating that the altcoin rebound was extremely brief. Data shows that this round of altcoin market lasted only about a month, starting from Trump's election in November 2024, and abruptly ending in early December.

The report pointed out that a better-than-expected U.S. employment data quickly shifted the market focus, and the Federal Reserve's more hawkish stance increased downward pressure on risk assets. Although Bitcoin's price has pulled back, its performance still significantly outperformed the market, and seasoned traders have rotated back from altcoins to Bitcoin. Despite Bitcoin's own price pullback, its performance remains significantly better than the market.

Analysts believe that the current market hopes to rely on a recovery in liquidity to push Bitcoin further up, but under the backdrop of the Federal Reserve's unchanged hawkish tone, the next round of increases may still require more patience.