Bitcoin Updates: Bitcoin Drops Despite Fed's Easing, Optimism Grows for Altcoins

Bitcoin continues to hold a commanding presence in the crypto sector, yet both expert opinions and recent market trends indicate its dominance may be weakening. Shifts in Federal Reserve policy, unpredictable ETF activity, and significant industry developments are all contributing to a changing environment.

The Federal Reserve has halted its quantitative tightening and has injected $29.4 billion through its standing repo facility, signaling a more accommodative approach to ease liquidity concerns in the banking sector, according to

. This policy change stands in stark contrast to the $1.34 billion withdrawn from Bitcoin ETFs over the past four days, as investors remain wary despite the central bank’s supportive measures. Although the Fed’s actions could eventually drive more capital into riskier assets like cryptocurrencies, has dropped about 10% in the last week, not fully reflecting the broader liquidity increase.

The situation is further complicated by the performance of altcoins. According to analysts such as Virtual Bacon, Bitcoin’s dominance, now at 60.21%, is still trending downward on a weekly basis, leaving space for altcoins to gain traction, as noted in

. The analysis points out that when Bitcoin’s dominance falls below 62%, capital often shifts to smaller cryptocurrencies, with sectors like DeFi, gaming, and tokenization showing renewed momentum. However, the Altcoin Season Index is currently at 41, well below the 75+ mark that typically signals a strong altcoin rally.

At the same time, significant industry moves are driving infrastructure expansion.

(NASDAQ:COIN) is reportedly nearing a $2 billion acquisition of stablecoin firm BVNK, a deal that would strengthen its payments network and support its growing stablecoin revenue, according to . This acquisition highlights the competitive push to lead in stablecoin infrastructure, with Mastercard also pivoting toward Zerohash. In a separate development, FTSE Russell has teamed up with to bring its global index data on-chain, making benchmarks like the Russell 1000 more accessible via blockchain. These collaborations demonstrate growing institutional trust in the role of crypto within the financial system.

Nonetheless, vulnerabilities in the market are apparent. Ethereum’s

token soared 120% following a post by co-founder Vitalik Buterin, but traders caution about potential short-term corrections as the RSI indicates overbought conditions, according to . Likewise, Chemed Corporation (NYSE:CHE) experienced a $13 million reduction in holdings by Schwartz Investment Counsel, reflecting declining confidence as EBITDA falls in its hospice and plumbing divisions, as reported by .

Wider market uncertainty is being intensified by global economic pressures. Pine Labs, an Indian fintech competitor to Paytm and PhonePe, has reduced its IPO target to $440 million from $1 billion, aiming for a $2.86 billion valuation amid regulatory adjustments, according to

. This downsized offering reflects a cautious approach among investors in emerging markets, where capital raising remains strong but highly selective.

The outlook for Bitcoin will depend on whether the Fed continues to provide liquidity and if ETF inflows recover. Experts remain split: some anticipate a revival in altcoin momentum as Bitcoin’s dominance steadies, while others warn that ongoing macroeconomic challenges and ETF outflows could extend the bearish trend highlighted in the TradingView analysis.