$BTC

Bitcoin Dominance

The ratio of Bitcoin's market cap to the total market cap of the entire cryptocurrency market

It is an indicator that shows. Although BTC no longer dominates more than 50% of the market, BTC as a coin still dominates almost half of the market, while the rest of the market remains important, being shared among thousands of people. The investment in BTC is so large compared to the investment in other cryptocurrencies that if anything happens to Bitcoin, it will affect the entire market. This is exactly why the expression "All cryptocurrencies follow Bitcoin" is said.

What Happens If BTC Dominance Is High?

It shows that users' risk perception has decreased and they are following a Bitcoin-focused investment strategy.

We can say that it shows Bitcoin's share in the market, that is, it shows what percentage of a pie is Bitcoin and what percentage of altcoins it is. If Bitcoin dominance is 60 and above 60, every movement (decrease and increase) Bitcoin makes will affect altcoins. If Bitcoin increases, altcoins increase, if Bitcoin decreases, altcoins decrease.

What should be the Dominance for Altcoins to Rise?

Wait until market dominance is above 50% (ideally 55-65%)

As BTCD dominance decreases, Altcoin dominance will begin to increase.

The decline in Bitcoin dominance can be seen as a basis for altcoins to rise significantly, depending on some conditions. Still, while the loyalty of altcoins to Bitcoin remains high, an event affecting the price of Bitcoin may cause sharper declines in altcoins.

For this reason, my friends, instead of looking at bitcoin, looking at dominance BTCD is more useful for alt coins. The more bitcoin's market dominance decreases, the more useful it is for altcoins. It shows that bitcoin investors have switched to altcoins or stable coins, which means an increase in prices in altcoins. Altcoin investors should look at bitcoin's dominance, not its price.