Bitcoin Dominance Could Return in September as Crypto Traders Await Fed Decision
By Tanaya Macheel | Published August 31, 2025, 7:30 AM EDT
Bitcoin’s market dominance may make a comeback in September after a summer where the leading cryptocurrency underperformed compared to its peers. As crypto traders closely watch the Federal Reserve’s upcoming policy meeting, many anticipate that Bitcoin—the original cryptocurrency—could regain ground, at least temporarily, despite recent sluggishness.
Bitcoin’s Performance Lags Behind Ether and Other Crypto Assets
This summer, Bitcoin has not kept pace with the broader cryptocurrency market. In August, Bitcoin’s price declined by approximately 7%, while Ether (ETH), the second-largest cryptocurrency, surged by 17%. Over the past two months, Bitcoin’s value has inched up less than 1%, significantly trailing Ether’s remarkable 74% gain in the same period.
This trend is reflected in Bitcoin’s market dominance, a metric that measures its share of the total crypto market capitalization. According to TradingView, Bitcoin’s dominance dropped by more than 5% over the past month as new crypto assets and public companies linked to digital assets gained traction. The influx of these publicly traded stocks, many of which are committed to acquiring cryptocurrencies as part of their business models, has shifted investor attention away from Bitcoin.
September Could See a Shift Back Toward Bitcoin
As September approaches, market participants expect volatility—an environment where Bitcoin might emerge as the preferred asset. Matthew Sigel, head of digital assets research at VanEck, pointed out that while this market cycle doesn’t exhibit the excessive leverage seen previously, many new stocks require ongoing buyer interest to maintain prices. “If retail investor appetite falls materially, those stocks will definitely suffer and Bitcoin itself might end up being an outperformer,” Sigel said.
Historically, September has been one of Bitcoin’s weaker months. Data from CoinGlass reveals that since 2013, Bitcoin has averaged a decline of 3.7% in September and a median loss of 4.3%, despite finishing in positive territory in the past two Septembers. However, the following month, October—affectionately dubbed “Uptober” in the crypto community—has been notably bullish. Bitcoin has rallied in all but two Octobers since 2013, posting average and median returns near 21%.
Market Analysts Look to ETH-BTC Ratio and Fed Meeting for Clues
Satraj Bambra, CEO of hybrid crypto exchange Rails, expects Bitcoin to consolidate early in September, potentially marking local highs in the ETH-BTC ratio (which measures Ether’s performance against Bitcoin). “You will see ETH-BTC cool off, and that means Bitcoin dominance takes a bit of a run against ETH in September,” Bambra said.
Looking ahead, investors are focusing on the Federal Reserve’s policy meeting scheduled for September 16-17. Fed Chair Jerome Powell recently hinted at the possibility of an interest rate cut, a development that generally favors pro-liquidity assets like Bitcoin. Historically, such monetary easing tends to bolster Bitcoin’s price.
Factors Supporting Bitcoin’s Resilience
Despite persistent risks from potential broad market sell-offs and challenging macroeconomic conditions, Bitcoin is expected to remain supported by significant accumulation activity and inflows to Bitcoin Exchange-Traded Funds (ETFs). These dynamics provide a cushion for the cryptocurrency going forward.
Notably, Bitcoin reached a fresh all-time high near $125,000 on August 13, underscoring the asset’s capacity for substantial upward moves even amid choppy markets.
As September unfolds, all eyes will be on the Fed’s decisions and how shifts in policy might influence the continuing battle for dominance within the cryptocurrency space. Traders and investors alike will watch closely to see if Bitcoin resumes its role as the market leader or if other digital assets retain the spotlight.
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