@gain4
Bitcoin dominance refers to the percentage of the total cryptocurrency market capitalization that Bitcoin represents. When Bitcoin dominance is high, it often signals that Bitcoin is leading the market in terms of investor confidence and capital flows. In such times, altcoins tend to underperform, as investors flock to Bitcoin for safety or speculative gains. Conversely, when Bitcoin dominance drops, altcoins often experience a surge in popularity and price, as capital flows into smaller projects. The rise or fall of Bitcoin dominance can heavily influence market sentiment, with investors watching it as a gauge of overall market health and trends. A high dominance generally signals cautious or conservative market sentiment, while a low dominance often indicates a risk-on attitude, favoring higher-risk altcoins.
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