@cameronattwood
An increase in BTC dominance commonly coincides with capital rotating into Bitcoin, often signaling risk-off or consolidation phases, which can compress altcoin performance. However, dominance shifts are not mechanically suppressive—altcoins with strong narratives, distinct utility, or recent catalysts can outperform even as BTC’s market share grows. Dominance metrics are influenced by relative price moves and supply changes; for instance, if BTC rallies while many alts stagnate, dominance rises. Context matters: dominance increases driven by ETF inflows or macro-driven safe-haven bids portend different outcomes from dominance driven by protocol-specific news. Use breadth indicators, stablecoin deployment, and sectoral flows to determine whether alt weakness reflects a systemic rotation or idiosyncratic underperformance.
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