What is Bitcoin Dominance? How does it work?
Assalamu Alaikum
Because the dominance of ALT Coins is very low,
And this is called Dominance, you need to know about Dominance even to understand the bad side and good side in the market.
You will notice that Bitcoin is pumping, but ALT Coins are not showing such a pump, and whenever Bitcoin starts to fall, ALT Coins have a huge fall, and this is due to the increase in dominance of Bitcoin.
Because the dominance of Bitcoin is increasing and the dominance of ALT Coins is decreasing.
You can see USDT Dominance,
Suppose I have 1000 Bitcoins, I have sold 1000 Bitcoins through USDT Stable Coin, it will reduce the dominance of Bitcoins.
And it will increase USDT Dominance,
But just when Bitcoin is stable in a nice rally, ALT Coins see a pump.
Especially big traders always trade Bitcoin, Ethereum,
When Bitcoin goes to a good position and becomes stable, Investors, looking for alternatives to Bitcoin, invest in ALT Coins.
Moreover, when Bitcoin is in a bullish mood, Investors are only focused on Bitcoin.
So it is a misconception that ALT coins will be pumped only by pumping bitcoins.
If we want to do market analyses, we have to look at Dominance, Fear & Greed index etc.
I hope everyone understands, stay well everyone, I'm ending today here, Allah-Hafez.
https://twitter.com/RakibInsid68546/status/1785113110828728522?t=F6ZYabR7lh1cUKGSHQloYA&s=19
Very well bro, just feel like simple and humble study about dominance of Bitcoin, and It was interesting. Keep it up bro, all the very best.
I agree that these are important metrics that should be considered before studying the market sentiment and figuring out how they doing and even what could be the next possible move in the market so thanks to you for sharing about it and it is informative.
Bitcoin dominance is very important especially when it comes to Bitcoin price rise. It has quite an impact on the market so we all should know about it. thank you