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When KIND's $60 million deal with one of the biggest conglomerates fell through in 2008, the company's founder, Daniel Lubetzky, was expecting a baby and had "no
nest egg."
"It was the luckiest thing because KIND kept growing like crazy, but I didn't know it at the time."
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Why Bitcoin Dominance Matters in the Next Crypto Cycle
The crypto market is a much bigger place than just Bitcoin, but the king remains to be the ruler of the market.
One of the metrics crypto traders follow is the Bitcoin Domination (BTC.D).
What is Bitcoin Dominance?
Bitcoin Dominance is a metric that shows what percentage of the crypto market belongs to Bitcoin. When it is rising, it means that Bitcoin is accumulating dominance over the alternative cryptocurrencies or altcoins. On the contrary, if it is falling, altcoins are gaining ground over Bitcoin.
But why should crypto traders care?
🔥 Bitcoin is Usually the First Asset To Rise
Bitcoin is often the first coin to welcome liquidity back into the crypto market.
Typical market cycles usually progress in the following manner:
Of course, they are not always the same, but it is one of the most-common cycle patterns that traders try to pick up on.
📊 What Happens When BTC Dominance Rises?
It means that the capital is flowing towards Bitcoin and away from altcoins. During these times, it can be very hard for altcoins to beat Bitcoin’s performance. That is why you should not just buy altcoins every time you see Bitcoin rising.
🚀 What Happens When BTC Dominance Falls?
It means that the risk-appetite of the market is increasing. If Bitcoin’s performance is steady, but its dominance is falling, it is a sign that the market is rotatating towards altcoins. This is one of the reasons why BTC.D is so often mentioned in the context of altseasons.
🧠 The Bigger Picture
You should not consider Bitcoin dominance as a singular metric to buy or sell assets. It is better to use it in combination with other factors, such as:
• Bitcoin’s structure and volume
• Ethereum’s performance
• Liquidity of stablecoins
• Market-widew sentimen
• Altcoin-BTC pairs
These metrics, taken altogether, will present a more comprehensive look at the market.