Bitcoin Dominance Dips Below 60% as Ether Surges and Markets Anticipate September Rate Cut

Bitcoin’s share of the total crypto market capitalization has dropped below 60% for the first time since February 1, driven by a strong altcoin rally led by Ether (ETH), which has climbed past $4,600.

Bitcoin (BTC) now holds a market cap of $2.39 trillion, while the total cryptocurrency market has surged beyond the $4 trillion mark, setting a new record. The last time BTC dominance was this low, its price had not yet breached the $100,000 level.

The rally isn’t limited to digital assets. U.S. equities are also on a tear, with the S&P 500 and Nasdaq 100 reaching fresh all-time highs.

Meanwhile, the U.S. Dollar Index (DXY) has dipped below 98, further bolstering appetite for risk-on assets across global markets.

Traders are now almost unanimously pricing in a Federal Reserve interest rate cut at the upcoming September 17 policy meeting, which would lower the benchmark rate to a target range of 4.00%–4.25%.

However, Tuesday’s inflation data delivered a mixed message. While headline inflation came in lower than expected, underlying core inflation remains sticky, complicating the Fed’s policy outlook.