A decline in Bitcoin's dominance is often correlated with an increase in altcoin prices. This can be attributed to several factors:
Portfolio diversification: When Bitcoin's price stagnates or decreases, investors tend to diversify their portfolios by allocating funds to altcoins in search of higher returns.
Market sentiment: Positive market sentiment can embolden investors to allocate funds to altcoins, leading to increased prices.
Competition: The proliferation of altcoins offering innovative features and technologies has increased competition and attracted investment.
Market cycles: Certain market cycles may exhibit periods of strong altcoin performance while Bitcoin remains relatively stable or declines, contributing to a decrease in Bitcoin's dominance.
