Bitcoin Dominance Falls Below 60% as Crypto, U.S. Stocks Hit New Highs

Bitcoin (BTC) dominance has fallen below 60% for the first time since Feb. 1. This figure represents bitcoin’s share of the total cryptocurrency market capitalization.

Bitcoin’s market cap now stands at $2.39 trillion, while the overall cryptocurrency market has surged past $4 trillion, setting a new all-time high.

Ether (ETH) has been a key driver of the rally, climbing above $4,600. The last time bitcoin dominance was this low, Bitcoin’s price was under $100,000.

It is not just cryptocurrencies hitting records, U.S. stocks are also reaching new highs. Both the S&P 500 and Nasdaq 100 have set fresh records.

Meanwhile, the DXY index, which tracks the U.S. dollar against a basket of major currencies, has slipped back below 98, providing continued support for risk assets.

Markets are currently pricing in nearly a 100% probability of a rate cut at the September 17 Federal Reserve meeting, which would bring the benchmark federal funds rate down to 4.00%–4.25%.

However, Tuesday’s inflation report was mixed: the headline year-over-year figure came in softer than expected, but core inflation remains a challenge.