Understanding Bitcoin Dominance. When will Altseason start? 🚀
Bitcoin dominance is the percentage of the total crypto market value that belongs to Bitcoin. It shows how much of the crypto market is made up by Bitcoin compared to all other altcoins combined 🤑
Yesterday, this percentage reached a new high for this cycle of 61.52%
🔼 When Bitcoin dominance rises, Bitcoin is capturing more of the market share. Bitcoin sucks up the liquidity from alt coins and memes often outperforming them.
In this market, everything trades like this:
• If BTC up = alts slightly up
• If BTC down = alts nuke by a lot
• If BTC stable = alts down
🔽 When Bitcoin dominance falls, it means altcoins are gaining more market share starting to outperform BTC.
During this time investors have higher risk appetite and are shifting Bitcoin gains into alts, seeking higher returns 🤪
In this market, everything trades like this:
• If BTC up = altcoins are pumping hard
• If BTC down = strong altcoins are slightly down or stable
• If BTC stable = altcoins are rising
Altseason usually happens when Bitcoin dominance drops significantly. This is usually the last thing to happen at the end of the bull market as investors take greater and greater risks in the pursuit of profit 💰
