The cryptocurrency market experienced a historic rally, surging 8% to reclaim a $3 trillion market capitalization. This bullish momentum was driven by Bitcoin’s (BTC) remarkable ascent past $90,000, fueled by former U.S. President Donald Trump’s confirmation of a Bitcoin Strategic Reserve.
Bitcoin Dominance Declines Amid Altcoin Rotation
Despite Bitcoin’s impressive rally, its market dominance (BTC.D) dropped from 55.4% to below 50%, signaling a capital shift toward altcoins. Historically, such declines in Bitcoin’s dominance have preceded major altcoin market expansions, a trend that traders and analysts closely monitor for potential investment opportunities.
Trump’s announcement that the U.S. “Crypto Strategic Reserve” would include Ripple (XRP), Solana (SOL), and Cardano (ADA) sent these assets into a sharp rally. Investors quickly repositioned their portfolios to take advantage of the anticipated institutional adoption of these altcoins.
Controversy Over Strategic Reserve Asset Choices
The inclusion of altcoins in the reserve sparked criticism from Bitcoin maximalists, who argued that BTC should be the sole asset held. In response, Trump later clarified on Truth Social that while Bitcoin and Ethereum (ETH) would serve as the core holdings, select altcoins were included for diversification purposes. Despite this clarification, high-cap altcoins faced significant volatility and capital inflows.
BTC surged 9.44%, posting its longest green candlestick since the post-election rally. XRP spiked 34.13%, while ADA recorded a staggering 72.15% single-day increase, reclaiming the $1 level. However, Bitcoin’s dominance swiftly rebounded after the initial decline.
The idea of XRP, SOLANA and CARDANO in a strategic U.S. reserve is so retarded that even Peter Schiff is becoming a Bitcoin maximalist. pic.twitter.com/aeD7FmuZdo
— The ₿itcoin Therapist (@TheBTCTherapist) March 2, 2025
Bitcoin Dominance Rebounds as Altcoins Retrace
At press time, BTC.D stood at 61.44% as XRP, ADA, SOL, and other altcoins retraced over 10%, failing to confirm resistance flips into support. Meanwhile, Bitcoin remains above $90K, correcting only 2% from its intraday high. Analysts suggest that BTC must hold above the $88K support level to maintain bullish momentum.
Also Read: Bitcoin Soars to $93K as XRP Flips Ethereum in Stunning Market Shakeup
With profit-taking accelerating in altcoins, Bitcoin stands to benefit from renewed capital inflows, reinforcing its position as the market leader. As speculation around the Crypto Strategic Reserve continues, investors await further regulatory clarity and market developments.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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