BITCOIN DOMINANCE MIGHT DROP AGAINST ALT LED BY ETHEREUM.

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The news of the Federal Reserve's latest interest rate increase just caused the cryptocurrency market to plummet. The crypto market undoubtedly anticipated this increase in interest rates from the Federal Reserve, which is increasing them by 0.75 points. The Fed chairman stated that there are less chances for a smooth landing, and I agree that more difficult times are ahead. Powell is reinforcing what he previously said, namely that they are dedicated to bringing down inflation to 2% and will keep hiking interest rates until they see it happen.

With the announcement of yet another interest rate increase, the Federal Reserve has crashed the cryptocurrency market. Without a doubt, the cryptocurrency market anticipated that the federal reserve will increase interest rates by 0.75 percentage points. The Fed chairman stated that the likelihood of a gentle landing is dwindling, and I concur that more difficult times are ahead. Powell has previously stated that they are committed to bringing down inflation to 2% and will keep raising interest rates until they see it happen. Powell is reinforcing that point.

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We don't yet know how close we are to the bottom of the crypto circle. Bitcoin's spectacular ascent to the pinnacle in January 2022 was halted by a blockage at its support level. Ethereum is currently gradually outperforming Bitcoin. Back in January 2021, a sizable sum of money was invested in the cryptocurrency market. This is because consumers could obtain loans with extremely low interest rates, which caused an inflation in all financial sectors, including the cryptocurrency market.

Because the value of the dollar had been declining over time, institutional money was needed to protect the funds and stop raging inflation. The fundamental driver of the cryptocurrency market pump is the fact that more people are investing their money in riskier assets like cryptocurrencies and stocks. Unfortunately, the new money market that was introduced at the beginning of this year has run its course. It is significant to remember that the recent Ethereum merger will serve as a channel for intriguing changes even though it does not increase scalability or gas fees.

As more money is invested in the cryptocurrency market, many individuals will want to diversify their money in altcoins that are rising faster than Bitcoin, therefore if we look at the updates that are coming in the future, we could see a significant drop in Bitcoin's dominance versus Ethereum. When comparing the new Ethereum PoS supply to the Ethereum PoW supply, we can see that the latter was increasing by roughly 3.8 percent annually, but the latter is currently increasing by a quarter of a percent. You should be aware that if investors begin focusing on Ethereum due to its low supply, this will cause Bitcoin's dominance to decline and there will also be a low supply for Ethereum, which might promote widespread adoption. Given its dominance in the NFT space, Ethereum will become more useful in a variety of contexts if it begins to attract attention from institutions.