SwissOne Capital: Bitcoin Market Share Upside Limited in Fed Rate Cutting Cycle

On October 10, crypto asset management firm SwissOne Capital said that the Federal Reserve's rate-cutting cycle could hinder the continued upward trend in bitcoin's (BTC) market share, leading to broader gains for the crypto market as a whole. According to TradingView data, Bitcoin's market share, which is its share of total cryptocurrency market capitalization, has risen from 38% to 58% in two years. In other words, Bitcoin has risen faster relative to the market as a whole, driving the total market capitalization of digital assets to double to more than $2 trillion. 
SwissOne Capital said that there is limited room for bitcoin's market share to rise further due to the Federal Reserve's recent 50 basis point rate cut, which kicked off a so-called easing cycle. “Bitcoin market share is positively correlated with the U.S. Federal Funds Rate,” SwissOne Capital noted in a market update, citing a decline in bitcoin market share during previous rate-cutting cycles.
SwissOne Capital noted, “If history repeats itself, the recently begun rate-cutting cycle in the U.S. certainly suggests that there is little room for Bitcoin's market share to rise further.” SwissOne Capital stated, “With the stablecoin market capitalization approaching 10% of total market capitalization, we believe this explains why bitcoin's market share could peak between current levels and 60% (max), followed by a major reversal.” (CoinDesk)