๐ด What is Bitcoin dominance?
Bitcoin dominance is the ratio of the market capitalization of Bitcoin compared to the total market capitalization of all cryptocurrencies.
In other words: it is a measure that shows who controls the market: Bitcoin or altcoins.
๐ Why is it important?
When BTC dominance rises โ liquidity flows towards Bitcoin
๐ Investors seek safety and risk reduction
When BTC dominance falls โ liquidity shifts to altcoins
๐ Altcoin seasons often begin
๐ How does it affect the market?
High dominance + stable BTC price
โ Pressure on altcoins and weakness in their performance
Low dominance + quietly rising BTC
โ Strong opportunity for altcoin rallies
Rapidly declining dominance
โ Beginning of strong speculation on small and medium projects
๐ง Summary
Bitcoin dominance is the market compass:
It measures risk appetite
It determines the timing for entering altcoins
And reveals whether the market is in a safety phase (BTC) or a risk phase (Altcoins)
๐ Always monitor BTC dominance before making any trading decisions.
