WHAT IS EXACTLY BITCOIN MARKET DOMINANCE❓
🔺 You are just starting your crypto journey and I bet you hear that word thrown around lately on every post you see.. but what exactly does it mean?
Since BTC was the first crypto currency, it has remained the largest by market cap. Therefore Bitcoin Dominance is simply a metric used to measure the relative market share/capitalisation % compared to the rest of the cryptocurrency sector.
🔺 Why in the world would I care about BTC dominance? What makes it so important?
Good question. There are many reasons why this is an important metric for investors to take into consideration. (I’ll make another post later to not bore you guys with long boring posts and keep it short and simple.) But the main reason you hear that word thrown around lately is: Bitcoin dominance can be used to understand market sentiment. When dominance is high, it generally indicates that investors are more confident in Bitcoin compared to other cryptocurrencies as it might seem as a “safer” option because of its larger size and more established reputation. On the other hand, when it’s low could mean that investors are more willing to take risks on other cryptocurrencies for potential higher returns.
🔺 Finally you might ask… how do I know what is the current BTC dominance? Where do I find it?
You can find it by opening trading information of BTC on your Binance App. And that is also true not only for Bitcoin but also for any other cryptocurrency listed on Binance.
