Yes, Bitcoin (BTC) still holds dominance in the crypto market, and it is a very important metric for understanding its dynamics.
The "dominance of Bitcoin" refers to the percentage of the total market capitalization of cryptocurrencies that belongs to Bitcoin. It is calculated by dividing Bitcoin's market capitalization by the total market capitalization of all cryptocurrencies and multiplying by 100.
Currently, Bitcoin's dominance hovers around 60-63%, which means that more than half of all capital invested in cryptocurrencies is in Bitcoin. This makes it, by far, the largest and most influential digital asset.
What does this mean?
* Power of influence: Bitcoin's price movements often have a significant impact on the rest of the market. When Bitcoin rises, it often drags along the "altcoins" (other cryptocurrencies), and when it falls, the negative effect tends to be even more pronounced.
* "Safe" asset in the crypto ecosystem: In times of uncertainty or bear markets, investors tend to seek refuge in Bitcoin, considering it the most "safe" asset within the crypto ecosystem. This causes its dominance to increase in times of crisis.
* Market thermometer: Bitcoin dominance is a key indicator to anticipate possible changes in investor behavior.
* BTC dominance rises: This could indicate that investors are moving their money towards Bitcoin, which may signal that altcoins will lose value.
* BTC dominance falls: This suggests that altcoins are receiving more capital, which could initiate an "altcoin season" where many of them experience significant price increases.
Although its dominance has fluctuated over the years (for example, it was above 90% before 2017 and has reached lows during altcoin booms), Bitcoin maintains its position as the leading and most influential cryptocurrency in the market.#Xrp🔥🔥 #BTC
