My paper: Threshold Elasticity in the Relationship Between Bitcoin Price and Bitcoin Dominance

Abstract: This study analyzes the non-linear relationship between Bitcoin price (BTC) and Bitcoin Dominance (BTCDOM), focusing on the concept of threshold elasticity—the Bitcoin price point (P) at which the behavior of capital allocation in the cryptocurrency market changes. Using Hansen’s (2000) threshold regression model, the study identifies P through historical data from CoinMarketCap (01/01/2020–30/06/2025). The results show that before P, BTCDOM moves in tandem with BTC price, while after P, BTCDOM moves inversely, reflecting capital flow shifts toward altcoins. The study provides a foundation for trading strategies and market cycle predictions, with practical implications for investors and automated trading systems...(details on request)