@adelphianae
What role does Bitcoin dominance play in the crypto market?
Bitcoin dominance (BTC.D) measures Bitcoin’s market capitalization relative to the entire cryptocurrency market. It provides insights into market trends:
High BTC Dominance (Above 50%): Indicates that Bitcoin is leading the market, often during bearish conditions when investors seek safety in BTC. Altcoins tend to underperform during these periods.
Low BTC Dominance (Below 50%): Suggests that altcoins are gaining market share, often occurring in bullish cycles when investors take more risks on altcoins.
Traders monitor BTC dominance to predict altcoin performance. When dominance drops, it may signal an "altseason" where altcoins outperform Bitcoin.
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