Bitcoin dominance has reached a new cycle high, surpassing 61%, despite a price correction. This increase is attributed to stronger-than-expected U.S. job growth and the Federal Reserve's hawkish stance. The positive jobs report suggests a well-performing economy, leading to higher interest rates, which prompts investors to shift from altcoins to safer assets like Bitcoin. As a result, the overall crypto market cap has declined significantly, indicating a contraction in market liquidity. Although Bitcoin has remained relatively resilient compared to altcoins, the price correction aligns with the decreasing market cap, indicating the impact of the liquidity dry-up. Analysts believe that sustaining significant price increases for Bitcoin will require more patience, as the Federal Reserve's actions may counteract the positive effects of increased liquidity.



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