BTC dominance has taken a hit by dropping below 60% following announcements of a US Crypto Reserve by Donald Trump, along with a White House Crypto Summit. Bitcoin dominance‘s fall is moving investors’ money to altcoins, spilling money over to the crypto market.
Trump revealed that the US crypto reserve would include not only Bitcoin and Ethereum but also altcoins like XRP, Solana, and Cardano. This news alone has sent ripples through the crypto ecosystem.
The immediate market response saw climb 10% to $94,220, while altcoins outperformed with pumping 60.3%, jumping bi34.7%, rising 25.5%, and gaining 13.1% within 24 hours.
This redistribution of market share has probably started the long-awaited altcoin season.
(source)
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BTC Dominance And What It Does To Crypto Market?
The decline in BTC dominance is a shift in investor focus toward altcoins. Historically, BTC dominance peaks before bull runs, as investors pile into the relatively stable asset, then dips as profits are rotated into smaller market cap altcoins.
Subsequently, yesterday’s US crypto reserve announcement appears to have accelerated this cycle. Donald Trump has effectively endorsed a wider range of crypto assets by naming XRP, Solana, and Cardano alongside Bitcoin and Ethereum. Furthermore, altcoins not mentioned in Trump’s announcement also saw gains, a spillover effect as trader sentiment turns bullish globally.
Donald Trump announces Bitcoin and Ethereum will be at the heart of the crypto reserve
“I also love Bitcoin and Ethereum” 👀😳 pic.twitter.com/U4r5MAT3VV
— Gordon (@AltcoinGordon) March 2, 2025
Trump’s vision for a US Crypto Strategic Reserve builds on an executive order he signed in January 2025.
Furthermore, the initial campaign promise at the Bitcoin 2024 conference focused on a “strategic national Bitcoin stockpile,” but his recent inclusion of altcoins has surprised some purists, with Peter Schiff criticized it as a “shitcoin reserve.”
Nonetheless, the White House Crypto Summit scheduled for March 7, 2025, could provide clarity. David Sacks, Trump’s Crypto and AI Czar, hinted at “more to come” at the summit. This aligns the US Crypto Reserve with the administration’s pro-crypto stance to bring wider crypto adoption globally.
Trump to host the first ever Crypto Summit at the White House and you’re bearish? pic.twitter.com/6TLM95LbxY
— 0xLawyer (@0xLawyah) March 1, 2025
USA Today reports that Trump’s team is moving fast, leveraging his January executive order, but analysts are divided on the mechanics. Some argue that Congressional approval might be needed for significant funding, while others suggest the reserve could launch by reallocating seized assets as a faster route.
State-level efforts also offer a helping hand. It is confirmed that 18 US states have pending crypto reserve bills, with Arizona and Utah nearing approval. Senator Cynthia Lummis said that states might adopt reserves before the federal government.
Given the track record of Donald Trump, a federal reserve will probably happen by mid-2025.
Crypto To Pump To A New Height: Pumping Now
Market data also shows the altcoin surge’s momentum. Bitcoin hit $93,000 today, with Ethereum and XRP rallying 14% and 35% the previous day, driven by Trump’s endorsement.
There was a 7% hourly jump in Bitcoin to $92,000 from $84,000, with spot demand rising as buyers dominate. Open interest remains flat indicating that the crypto market is entering a genuine accumulation that usually leads to a bull run.
The bullish case for a bull run is compelling. Trump’s US crypto reserve will legitimize crypto as a strategic asset class, rivaling gold’s $16 trillion market cap, as he predicted at Bitcoin 2024.
The inclusion of altcoins diversifies the narrative beyond Bitcoin, drawing in new retail and institutional capital.
Standard Chartered’s Geoff Kendrick still eyes a $500,000 price level for Bitcoin by Trump’s term end, citing fresh buyers like banks and sovereign wealth funds. Furthermore, BlackRock is adding its iShares Bitcoin ETF to a $150 billion portfolio. These are all driving the crypto markets higher beyond every bull cycle.
With altcoins already outpacing Bitcoin’s 10% rise, a synchronized bull run across the market looks plausible, possibly peaking in late 2025 as the reserve takes shape.
US Crypto Reserve will counter every dip by injecting confidence and liquidity.
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Key Takeaways
- The falling of Bitcoin Dominance to drive altcoins bull run.
- Crypto market is pumping now, what’s next?
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