$BTC Dominance Explained Clear, Hard Facts Only
Most people talk about $BTC dominance without understanding what actually drives it. Here’s the clean version no fluff.
1. What $BTC Dominance Really Measures
BTC dominance = Bitcoin’s market cap share compared to the entire crypto market.
If dominance rises, Bitcoin is outperforming altcoins.
If dominance drops, altcoins are gaining faster than BTC.
Simple ratio nothing mystical.
2. Why BTC Dominance Rises
Risk-off market: Investors dump altcoins and move to Bitcoin for safety.
Institutional inflows: ETFs and big funds buy BTC, not random altcoins.
Macro fear: High rates, uncertainty, recession fears force people into the “least risky” crypto.
Altcoin weakness: Scam projects die, liquidity dries up BTC attracts surviving capital.
When dominance rises, it means the market trusts Bitcoin more than everything else.
3. Why BTC Dominance Falls
Altcoin bull cycles where retail takes over.
Narrative driven seasons (AI coins, gaming, L2s, memes).
Surge in speculative liquidity people chase higher risk coins for bigger returns.
If dominance falls too fast, it usually means the market is overheating.
4. Why BTC Dominance Matters
Rising dominance → safer environment, altcoins underperform.
Falling dominance → altseason potential, speculative run-ups.
Extreme dominance → market stress.
Extremely low dominance → bubble territory.
Ignoring dominance = trading blind.
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