#Day98 : The Role of Bitcoin Dominance in the Crypto Market
Bitcoin Dominance (BTC.D) measures Bitcoin’s market cap relative to the total crypto market cap. It’s a key indicator for understanding market sentiment and predicting altcoin trends. When BTC.D rises, it signals that investors are favoring Bitcoin over altcoins — often during uncertain or bearish conditions. When it falls, altcoins tend to gain strength, often signaling an "altseason."
Traders use BTC.D alongside price action to spot shifts in momentum. A rising Bitcoin price with falling dominance often means capital is flowing into altcoins. Conversely, falling BTC price with rising dominance suggests a market retreat into Bitcoin as a safer asset.
Understanding Bitcoin Dominance helps you position your portfolio more effectively and stay ahead of market cycles. It’s a must-watch metric for every serious crypto trader.
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