$BTC dominance for new traders :

As $BTC is exactly 66.666 😈 at the time we write this , let’s take the opportunity to explain what Bitcoin Dominance is and how it affects your trading.

You might look at the Bitcoin chart and then at an alt coin ( basically every other coins) and see that they look almost the same. As if all alt coins are stuck to it.

Well they are. Bitcoin represents a huge part of the crypto market and the ratio of its market cap to the market cap of all cryptocurrencies is measured in the BTC.DOM chart ( find it on TradingView ). Currently 55.4%.

Knowing that, you can use the dominance chart to better predict big moves in alt coins ( where the biggest growth can occur).

To simplify, as BTC.DOM gets lower, alt coins are more free to perform on their own as more money flow into them rather than into Bitcoin.

A higher Bitcoin Dominance shows more fear of investing into alt coins, as traders and institutions prefer the safety and relative stability of Bitcoin.

To get a general understanding of alt coins behaviour relative to Bitcoin Dominance you can use this chart (Coin Gecko). While it is mostly valid, remember that this is crypto and anything can happen.

Lastly, keep an eye on coins that do not tend to be performing along Bitcoin even while its dominance is high ( ex. $XRP )