my incredible followers! 👋 I truly value each and every one of you, and I know how important it is to break down complex topics into something easy to understand.
Why does bitcoin dominance have to crash before alt goes up ?😢🤔⬇️
Today, I’m going to explain Bitcoin dominance and altcoin seasons using something we all relate to: cash vs. bank transactions. Let’s make this fun and simple😊📌🤩
Bitcoin is Like Cash, Altcoins are Like Bank Transactions 💳💰
Think of Bitcoin (BTC) as cash – it’s the original, most trusted form of money. People hold it because it’s reliable and widely accepted. 📌⬇️
On the other hand, altcoins (like Ethereum, Solana, etc.) are like bank transactions – they represent newer, more innovative ways to move money around (think mobile banking, transfers, or ATM withdrawals).📌⬇️
Just as cash and bank transactions coexist in the real world, Bitcoin and altcoins coexist in the crypto world. But their popularity can shift depending on the situation, and that’s where things get interesting!😅😊
Scenario 1: BTC Dominance Drops (Altseason Begins) 📉🚀
When Bitcoin dominance drops, it means people are moving their money from $BTC (cash) into altcoins (bank transactions). This usually happens when the crypto market is stable, and investors feel confident exploring newer, riskier opportunities.
how does it works:
Imagine a part of the world where digital banking improves, and everyone starts using their bank apps for payments instead of carrying cash. People feel safe and secure, so they rely less on physical cash and more on bank services. In crypto , this translates to altseason – a time when altcoins boom, and their values rise significantly. Investors are excited about the potential of these newer projects, and the demand for Bitcoin (cash) decreases as more money flows into altcoins (bank transactions). Interesting 🤔😊
Scenario 2: BTC Dominance Rises or Bitcoin Dips (Alts Crash Hard) 📈💥
On the flip side, when $BTC dominance rises, it means people are rushing back to Bitcoin (cash) and moving away from altcoins (bank transactions). This often happens during times of uncertainty or panic in the crypto market.
Here’s why:
Imagine a situation where banks suddenly increase transaction fees or freeze some accounts. People would panic and rush to withdraw their money, preferring to hold cash instead of keeping it in the bank. Similarly, in crypto , when the market becomes uncertain, investors see Bitcoin as a safe haven and move their money out of altcoins and back into Bitcoin. This causes altcoins to crash hard, while Bitcoin dominance rises. It’s like a flight to safety – investors trust Bitcoin (cash) more than the newer, riskier altcoins (bank transactions). 😬
😊Why is this relevant?
Understanding Bitcoin dominance helps you predict market trends and make smarter investment decisions.
what you need to remember:
- When Bitcoin Dominance Drops: It’s a sign that altseason might be starting. This is a great time to explore altcoins and potentially see big gains. 🚀
- When Bitcoin Dominance Rises: It’s a signal to be cautious with altcoins and consider holding more Bitcoin for safety. 🛡️
By keeping an eye on Bitcoin dominance, you can better understand the ups and downs of the crypto market and make decisions that align with your goals.
Let’s keep learning and winning together! 🎉💪
