Bitcoin's dominance slipped below 50% following the inclusion of altcoins in the U.S. strategic reserve, leading to a capital shift towards altcoins.
Altcoins Added to U.S. Strategic Reserve
The U.S. President announced the inclusion of altcoins like Ripple [XRP], Solana [SOL], and Cardano [ADA] in the strategic reserve, causing a sharp rally in these assets. However, this decision was met with criticism over excluding other assets such as Bitcoin and Ethereum.
Market Volatility and Capital Flows
Despite clarification, Bitcoin continued to rise, reaching $90K, but its dominance dropped to 50%. High-cap altcoins experienced significant volatility: XRP increased by 34.13%, and ADA by 72.15%, although most later corrected over 10%.
Market Reaction and Bitcoin's Future
The market remained divided after the strategic reserve approval. Bitcoin needs to maintain the $88K support to confirm market strength as capital distribution among assets continues.
Despite recent market fluctuations, Bitcoin shows signs of regaining its dominance, though its future hinges on maintaining current positions amid volatility.
