How are currencies affected by Bitcoin's dominance movement?
1) When Bitcoin's dominance is rising (UP):
Upward dominance + Upward Bitcoin price = Downward altcoin price: This means that capital flows primarily into Bitcoin, driving up its price, while altcoins are neglected.
Upward dominance + Downward Bitcoin price = Downward altcoin price: In this case, investors flee the altcoin market and turn to Bitcoin as a safer asset, causing a sharp drop in their prices.
Upward dominance + Stable Bitcoin price = Stable altcoin price: Here, there is no significant change in altcoin prices despite Bitcoin's rising dominance.
2) When Bitcoin's dominance is stable (STABLE):
Stable dominance + Upward Bitcoin price = Upward altcoin price: In this case, the altcoin market moves in tandem with Bitcoin and benefits from its rise.
Stable Dominance + Stable Bitcoin Price = Stable Altcoin Price: There is little movement in the overall market.
Stable Dominance + Falling Bitcoin Price = Down Altcoin Price: Altcoin prices follow Bitcoin and are affected by its decline.
3) When Bitcoin Dominance is Declining (DOWN):
Down Dominance + Rising Bitcoin Price = Altseason: This is the ideal situation for altcoin investors. Declining Bitcoin Dominance and rising Bitcoin price means that investors take profits from Bitcoin and transfer them to altcoins, causing their prices to rise significantly.
Down Dominance + Falling Bitcoin Price = Stable Altcoin Price: In this situation, capital is moving out of Bitcoin and into altcoins, helping to stabilize their prices despite Bitcoin's decline.
Down Dominance + Stable Bitcoin Price = Rising Altcoin Price: This indicates that capital is moving out of Bitcoin and into the altcoin market, significantly increasing their prices.
