$BTC Recently, we observed the movement of the cryptocurrency market, particularly in the Bitcoin chart, in response to Trump's electoral promises and all the events highlighted in the market, such as the possible cycle of interest rate cuts in the USA, Artificial Intelligence and productivity, in addition to conflicts around the world and tariffs. All these events influence prices in the market in due proportions. All these factors influence price behavior, each with its weight. Some are recurring, such as interest rate cycles, while others have more unpredictable impacts.

Within this context, it is important to understand how investors position themselves in moments of greater or lesser appetite for risk. In "risk-on" phases, markets tend to seek riskier assets, such as technology stocks or cryptocurrencies, in the hope of greater returns. In "risk-off" moments, there is a flight to assets considered safer, such as gold or government bonds. This alternation between optimism and caution helps explain part of the demand for Bitcoin.

It is based on this cycle that I bring to the table the reflection on the dominance cycle between Bitcoin and Ethereum. We can see how both assets behaved in the past cycle, which can be a good indicator of the end of one cycle and the beginning of another.

Market dominance is a powerful thermometer for understanding investor behavior within the crypto universe. When Bitcoin's dominance increases, it usually indicates that investors are seeking safety within the crypto market itself, concentrating capital in the most established and relatively lower-risk asset. It is a typical sign of caution, whether due to macroeconomic uncertainty or lack of confidence in alternative projects (altcoins).

Source of the Article:

https://investalk.bb.com.br/noticias/tecnologia/entendendo-a-dominancia-das-criptomoedas-e-o-que-esperar-do-mercado