⚡⚡⚡⚡⚡ Knowledge is power
What is #bitcoin☀️ Dominance ?????? 👀👀
#bitcoin☀️ is a really important idea in the crypto world. It basically shows how much of the total value of all cryptocurrencies belongs to Bitcoin.
👉Here's why it matters:
Market Mood: When Bitcoin dominance is high, it often means people see Bitcoin as a safer bet compared to other cryptocurrencies (altcoins). This usually happens when the market is unstable or uncertain.
Altcoin Seasons: When Bitcoin dominance goes down, it can signal the start of an "altcoin season." This is when altcoins tend to grow in value faster than Bitcoin.
Overall Market Health: Bitcoin is still the biggest and most well-known cryptocurrency. So, its dominance can give you a general idea of how the whole market is doing.
Think of it like this: 👀
🚀Imagine the entire crypto market is a pie. Bitcoin dominance shows how big Bitcoin's slice of that pie is. If Bitcoin's slice is huge, it means it's dominating the market. If its slice gets smaller, it means other cryptocurrencies are becoming more popular. Traders and investors use Bitcoin dominance to:
Make decisions about buying or selling: Should they invest in Bitcoin or altcoins?
Understand market trends: Is the market moving towards safety (Bitcoin) or risk (altcoins)?
Manage risk: How much of their portfolio should be in Bitcoin versus altcoins?
In simple terms, Bitcoin dominance is like a barometer for the crypto market, showing the balance of power between Bitcoin and other cryptocurrencies
Current situation