Jul 02, · Bitcoin dominance is used to measure the percentage of the cryptocurrency market that can be attributed to Bitcoin, BTC. The Bitcoin Dominance Index is a metric that investors can use to get a quick sense of Bitcoin's value relative to the broader digital currency market. Oct 05, · BTC dominance is the percentage of the total cryptocurrency market capitalization that Bitcoin takes up at any given point in time. But what exactly does this mean?
What does btc dominance meanBitcoin (BTC) Dominance Explained
By using this BTC dominance chart as an example, we will explore why Bitcoin is behaving the way it is. By the end of this, you will know exactly where the market is going next and how to capitalize on it.
Decreasing dominance simply means that Bitcoin does not take up as much as the market capitalization of the cryptocurrency market as it once did. With the majority of initial coin offerings ICOs being issued in , it makes complete sense why BTC dominance is decreasing.
But why did it increase from If BTC dominance was decreasing when people were buying all the new altcoins, then why did it starting increasing again?
Because people started selling and converting their altcoins back to Bitcoin! And I mean literally everyone was talking about Bitcoin when it was rallying and doubling, tripling, quadrupling its value within a week. Because of the fear of missing out FOMO on the gains that they heard stories about on the news, everyone bought in. And, of course, since the vast majority got their information here, they were aware of pretty much only Bitcoin, since it was the first and biggest cryptocurrency by far; thus, the digital asset that the focus and limelight were on.
And so after Bitcoin dominance originally declined because it had to share the market with the new altcoins, it then increased sharply when the masses began creating addresses and buying solely Bitcoin. People heard that it was possible to become a millionaire within a year — heck, even a few months! And so everyone was sold on this idea and the masses invested.
And when this happened, BTC dominance shot back up — almost doubling from the summer of to the end of that year. So what people decided to do was to use their Bitcoin earnings to invest in altcoins. They figured that if they could leverage their BTC gains by converting their highly-valued Bitcoin to a low or even micro-cap altcoin, said altcoin could explode in price and they could become very, very rich.
And so, of course, BTC dominance sharply declined once again, as the people who had Bitcoin sold it off in exchange for another cryptocurrency. As such, there are key differences that distinguish them from real accounts; including but not limited to, the lack of dependence on real-time market liquidity, a delay in pricing, and the availability of some products which may not be tradable on live accounts.
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Please note our special trading hours over the festive period. No Tags. D bounce idea BTC. D , 60 judemunday important. Now Question arises are we Looks like a rejection for the BTC.
Will probably correct and we could see more interest in Alts as profits rotate into more risk-on assets. If you look at btc. Hello friends There will be 2 altcoin seasons in The first one will likely be between February and June. D is below Trendline support now! Also BTC is going to have a correction on next days, So we expect more falls from it.
Attention : this is not a financial advise we just try to help people on their own vision.