It is the percentage that represents the size of the Bitcoin market (or another currency) compared to the total size of the crypto market.
> Example:
If Bitcoin's dominance is 52%, it means that 52% of the total money in the market is currently in BTC.
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📊 The impact of dominance change on the market:
🔼 Increase in Bitcoin dominance:
This means liquidity is moving from altcoins to BTC
The market is in a state of fear or hedging
Investors prefer safety
Less opportunity for speculation on small coins
✅ Preference is for Bitcoin and heavy projects like ETH and BNB
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🔽 Decrease in Bitcoin dominance:
Indicates that liquidity is moving towards altcoins
The market is in a state of optimism or greed
Violent spikes possible in small coins
The beginning of what is called the altcoin season (Altseason)
✅ Strong opportunities appear in active and newly rising projects (L2 – DeFi – AI…)
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📈 How do you use dominance in your strategy?
Market status Dominance is rising Dominance is falling
🧊 The market is scared BTC rises alone Other coins are falling
🤑 The market is optimistic BTC is stable Altcoins are exploding
📉 The market is bleeding Everyone is collapsing But dominance shows who is collapsing more
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🎯 Professional signals:
If BTC rises and dominance rises = healthy rise
If BTC rises and dominance decreases = liquidity enters altcoins = potential for an upcoming explosion
If BTC drops and dominance rises = everyone is fleeing towards BTC (hedging)
If BTC drops and dominance decreases = everyone sells = total panic (buying opportunity!)
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🧠 Summary:
Dominance = A mirror of liquidity movement
Understand its movements, and know where the money is flowing:
Is the market safe? Or for speculation? Or waiting for an explosion?