💰 $BTC continues to establish itself as the axis of the crypto market, but its behavior increasingly contrasts with that of altcoins. Understanding that difference is key to adjusting strategies 📊
🔸 Volatility
BTC exhibits lower relative volatility, making it more predictable in the short term. Altcoins, on the other hand, can skyrocket or plummet by 30% within hours. This contrast reflects the risk profile of each type of asset: BTC is a reserve, while altcoins are speculation.
🔸 Dominance
The dominance index of BTC acts as a compass for market sentiment. If it rises, it indicates that capital is migrating from altcoins to $BTC due to risk aversion. If it falls, it signals appetite for yield and altseason cycles 🔁
🔸 Narrative
BTC is linked with inflation, geopolitics, and institutional adoption. Altcoins depend on roadmaps, hype, use cases, and marketing. A decline in confidence towards the ecosystem can sink altcoins, while BTC remains resilient as a base asset 🧱
🔸 Reaction Cycle
In strong market movements, BTC leads. Altcoins react afterward. However, in bullish phases, many altcoins outperform BTC in ROI, albeit with higher risk 📈⚠️
🧠 What strategy to apply?
In times of uncertainty: greater exposure to BTC
In bullish markets with high liquidity: rebalancing towards altcoins with fundamentals
Always: risk management and correlation analysis
💡 $BTC is not just the most well-known crypto: it is the thermometer. Altcoins are the pulse. The contrast between the two reveals the rhythm of the crypto market.