đ Bitcoin dominance
The percentage of Bitcoinâs market capitalization out of the total cryptocurrency market capitalization.
đ˘ When Bitcoin dominance rises
This often means that more liquidity is moving into BTC compared to altcoins.
đ´ If dominance rises while Bitcoin is volatile or weak
Altcoins may come under greater pressure, as traders tend to reduce risk.
đľ If dominance falls while Bitcoin is stable or rising
This may indicate that some liquidity is moving into ETH and altcoins. But it does not guarantee the start of an altcoin season.
đĄ Bitcoin and dominance both fall
This often points to a broader market decline, not necessarily improving conditions for altcoins.
đŁ Bitcoin and dominance both rise
This means Bitcoin is leading the market, and altcoins may lag or rise at a slower pace.
⪠Hypothetical example
If Bitcoin rises 5% and its dominance increases from 55% to 57%, most of the new liquidity may be going into BTC.
But if Bitcoin remains stable and its dominance falls from 55% to 52%, risk appetite for altcoins may be improving.
â ď¸ Important: Donât rely on dominance alone; itâs also useful to look at BTCâs trend, ETHâs performance against BTC, trading volumes, and market liquidity
#bitcoin
#Binance
#BTC
The percentage of Bitcoinâs market capitalization out of the total cryptocurrency market capitalization.
đ˘ When Bitcoin dominance rises
This often means that more liquidity is moving into BTC compared to altcoins.
đ´ If dominance rises while Bitcoin is volatile or weak
Altcoins may come under greater pressure, as traders tend to reduce risk.
đľ If dominance falls while Bitcoin is stable or rising
This may indicate that some liquidity is moving into ETH and altcoins. But it does not guarantee the start of an altcoin season.
đĄ Bitcoin and dominance both fall
This often points to a broader market decline, not necessarily improving conditions for altcoins.
đŁ Bitcoin and dominance both rise
This means Bitcoin is leading the market, and altcoins may lag or rise at a slower pace.
⪠Hypothetical example
If Bitcoin rises 5% and its dominance increases from 55% to 57%, most of the new liquidity may be going into BTC.
But if Bitcoin remains stable and its dominance falls from 55% to 52%, risk appetite for altcoins may be improving.
â ď¸ Important: Donât rely on dominance alone; itâs also useful to look at BTCâs trend, ETHâs performance against BTC, trading volumes, and market liquidity
#bitcoin
#Binance
#BTC