Fed Rate Cuts May Limit Bitcoin Market Share Growth, Says SwissOne Capital

According to BlockBeats, on October 10, SwissOne Capital, a cryptocurrency asset management company, stated that the Federal Reserve's rate-cutting cycle might hinder the continuous rise in Bitcoin's (BTC) market share, potentially leading to broader gains for the entire crypto market. Data from TradingView indicates that Bitcoin's market share, which is its proportion of the total cryptocurrency market capitalization, has increased from 38% to 58% over two years. In other words, Bitcoin's growth has outpaced the overall market, driving the total digital asset market capitalization to double, surpassing $2 trillion. SwissOne Capital noted that due to the Federal Reserve's recent 50 basis points rate cut, initiating a so-called easing cycle, there is limited room for Bitcoin's market share to rise further. "Bitcoin's market share has a positive correlation with the U.S. federal funds rate," SwissOne Capital mentioned in a market update, adding that during previous rate-cutting cycles, Bitcoin's market share declined. SwissOne Capital highlighted, "If history repeats itself, the recent rate-cutting cycle in the U.S. undoubtedly suggests that Bitcoin's market share has almost no room for further increase." SwissOne Capital also pointed out, "With stablecoins' market capitalization nearing 10% of the total market cap, we believe this explains why Bitcoin's market share might peak between the current level and 60% (at most), followed by a significant reversal."