@stevenlrsharpgu
Bitcoin dominance, the percentage of total market capitalization held by BTC, reflects risk appetite. Rising dominance suggests capital consolidating into Bitcoin, often during uncertain or bearish phases. Falling dominance indicates capital rotation into altcoins, typical of speculative bull runs. Traders use dominance as a strategy tool to time portfolio allocations between Bitcoin and altcoins. For example, increasing dominance warns against overexposure to high-risk tokens, while declining dominance highlights altcoin opportunities. Dominance also signals institutional behavior, since large players tend to favor Bitcoin. Overall, it serves as a key barometer for market cycle positioning and capital flow trends.
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