The decline in Bitcoin's market cap dominance often signals a shift in investor sentiment, impacting altcoin market fund inflows. As Bitcoin's share drops, capital tends to rotate into altcoins, seeking higher returns from undervalued or emerging projects. Historical trends, like the 2017 altcoin boom, show that reduced BTC dominance—sometimes falling below 40%—correlates with altcoin rallies, as speculative funds chase gains. This inflow can boost liquidity and trading volume in the altcoin market, driving price surges in tokens like Ethereum or smaller-cap coins. However, it also heightens volatility, as these assets are more prone to pumps and dumps. While some view this as a diversification opportunity, others see it as a riskier bet, dependent on Bitcoin’s broader stability. In short, declining BTC dominance typically fuels altcoin fund inflows, amplifying both potential rewards and risks.