Meaning of BTC.D:
Determining Bitcoin's dominance:
When BTC.D rises, it indicates that Bitcoin is dominant and attracting more capital from the market. This typically occurs when the market becomes "defensive" and investors shift capital from altcoins (other coins besides Bitcoin) to Bitcoin, as Bitcoin is seen as a safer asset in crypto.
When BTC.D drops, it implies that capital is flowing into altcoins, usually during vibrant market phases (altcoin season).
Predicting market trends:
High BTC.D (e.g., above 50-60%): The market tends to focus on Bitcoin, and altcoins may lose value compared to Bitcoin.
Low BTC.D (e.g., below 40%): Altcoins may be on a strong upward trajectory, with many investment opportunities in coins other than Bitcoin.
Understanding investor strategies:
If you see BTC.D rising, it may be a signal to prioritize investment in Bitcoin over altcoins.
If BTC.D is declining, you might consider seeking out altcoin investment opportunities with high growth potential.
Factors affecting BTC.D:
The emergence of new altcoins: Many new altcoins can decrease BTC.D.
Price volatility of Bitcoin and altcoins: If Bitcoin rises more strongly than the altcoins, BTC.D will increase and vice versa.
The wave of DeFi or NFT: New trends in crypto often drive capital into altcoins, reducing BTC.D.
