#山寨币季节 is coming!
BTC.D (Bitcoin Dominance) is falling, which means Bitcoin's share in the total market capitalization is decreasing. Therefore, altcoins can start to layout! The reasons are as follows:
1. Funds rotating into altcoins:
The decline in BTC.D indicates that funds are flowing from Bitcoin to altcoins, and most of the profits in Bitcoin will be reallocated. Looking back at history, when BTC.D falls from a high (for example, from 65% to 40%-50%), altcoins often experience significant upward trends.
2. Changes in market sentiment:
The decline in BTC.D reflects that the market is more willing to put money into altcoins, which are more volatile and have greater potential, rather than continue holding relatively stable Bitcoin. In the past two days, the leading altcoin ETH has surged, while BTC is actually in a consolidation state or showing weak upward momentum, which is a good proof that funds are starting to seek higher return opportunities.
3. Performance of Ethereum and other major altcoins:
The ETH/BTC ratio is an important indicator for judging the altcoin market trend. If BTC.D declines while the ETH/BTC ratio rises (up 8.39% in the last week), Ethereum and other major altcoins may lead the market trend and drive other altcoins upward.
