SwissOne Capital: Bitcoin's market share has limited room for growth during the Fed's rate cut cycle

BlockBeats news, on October 10, crypto asset management company SwissOne Capital said that the Fed's interest rate cut cycle may hinder the continued upward trend of Bitcoin (BTC) market share, thereby bringing broader benefits to the entire crypto market.

According to TradingView data, Bitcoin's market share (i.e. its share of the total market value of cryptocurrencies) has risen from 38% to 58% in two years. In other words, Bitcoin's increase is faster than the entire market, driving the total market value of digital assets to double to more than $2 trillion.

SwissOne Capital said that due to the Fed's recent 50 basis point rate cut, which opened the so-called easing cycle, there is limited room for Bitcoin's market share to rise further.

"Bitcoin's market share is positively correlated with the U.S. federal funds rate," SwissOne Capital pointed out in a market update, mentioning that Bitcoin's market share declined in previous rate cut cycles.

SwissOne Capital noted: "If history repeats itself, the recently initiated rate cut cycle in the United States undoubtedly suggests that Bitcoin's market share has little room to rise further."

SwissOne Capital said: "With stablecoin market capitalization approaching 10% of total market capitalization, we believe this explains why Bitcoin's market share may peak between current levels and 60% (maximum), followed by a major reversal." (CoinDesk)