Bitcoin Dominance Slips Toward 53% as U.S. Policy Boosts Crypto

  • Bitcoin dominance falls, hinting at capital rotation into stronger altcoins.
  • Retail investors stay firm, showing confidence through volatility and corrections.
  • Senator Lummis hails Fed decision, easing restrictions on crypto-friendly banks.

Bitcoin’s market activity is showing contrasting signals between its price and dominance. Data from TradingView shared by analyst Mikybull Crypto shows Bitcoin (BTC) trading around $117,571 on the weekly chart. 

At the same time, its market dominance dropped to 59.72%. The BTC dominance chart indicated a break below a long-term trendline, pointing to potential declines toward the 53–54% range. 

Analysts said such moves often signal capital rotation into altcoins, which tend to rally during periods of Bitcoin consolidation. At press time, BTC traded at $117,595.61, reflecting a 1.13% decline in the last 24 hours.

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Source: Coinmarketcap

Investors Show Confidence Amid Market Swings

Despite the divergence between price and dominance, holders have maintained strong conviction. Analyst Vivek Sen declared he was not selling Bitcoin, sparking widespread reactions online. 

Many traders supported his stance, emphasizing a commitment to long-term holding. X Finance Bull described the current situation as a “typical Bitcoin move, nothing out of the ordinary.” 

More Crypto Online added that they were “still holding, still smiling,” underscoring continued optimism. Traders noted that such reactions highlight steady sentiment among retail investors, even as volatility persists.

U.S. Policy Shift Eases Pressure on Crypto Sector

Meanwhile, the U.S. digital asset sector received a regulatory boost following an announcement from the Federal Reserve. The Fed confirmed it will end targeted supervision of banks engaging in crypto-related activities. 

Senator Cynthia Lummis welcomed the move, calling it a “big win” for the industry and a key step toward dismantling Operation Chokepoint 2.0. She added that further work remains, but the decision marks progress toward a fairer environment for crypto banking. 

Analysts said the change reduces uncertainty for banks and fintech firms, potentially encouraging greater institutional adoption of Bitcoin and digital assets.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions

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