#BTCvsMarkets
When comparing BTC (Bitcoin) vs the market, you're essentially looking at how Bitcoin is performing relative to the broader crypto market or specific altcoins. Here's a breakdown:
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1. BTC Dominance (BTC.D)
Definition: BTC Dominance is the ratio of Bitcoin's market cap to the total crypto market cap.
Interpretation:
High BTC Dominance (rising): Investors prefer Bitcoin; altcoins may be underperforming.
Low BTC Dominance (falling): Altcoins are gaining more market share; "altcoin season" may be beginning.
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2. BTC vs Altcoins
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3. When to Choose BTC Over the Market
During bear markets or uncertainty, BTC is safer.
When BTC.D is rising, Bitcoin usually outperforms.
Institutional adoption or macro events (e.g., rate cuts, ETF news) benefit BTC first.
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4. When to Favor Altcoins Over BTC
During bull runs, altcoins often outperform BTC in % gains.
When BTC.D falls, it's often a sign that money is rotating into altcoins.
Look for strong narratives (e.g., AI tokens, L2s, DePIN, etc.)
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5. BTC as a Market Indicator
BTC is often the market leader. If BTC dumps, the whole market usually follows.
Many traders analyze BTC first before trading other coins.
