DOMINANCE
Dominance is a word in English, its meaning when translated as Vietnamese has "dominant, dominant". And BTC Dominance (btc.do DOM) is a technical term, understood as the dominance rate of Bitcoin over the rest, More in detail it is the percentage limit that Bitcoin taking into account the total capitalization of the entire cryptocurrency market. This relationship represents Bitcoin's dominance and overwhelming level with other altcoins on the market. There are times when it represents 60-70%, currently fluctuating around 50-55%.
BTC dominance rate is calculated from the bitcoin capitalization of world crypto markets. Hence, the higher the market cap of Bitcoin compared to other altcoins, the higher the dominance rate of BTC. For example, there was a time when Bitcoin's market cap reached $ 9 billion, all other altcoins combined with only $ 1 billion.
WHAT IS BITCOIN DOMINANCE
Overall, BTC Dominance Index represents the level of global market demand for Bitcoin. Many people need to buy Bitcoin HOAc USDT if you want to get involved in the cryptocurrency market and convert from altcoin to Bitcoin to keep your Altcoin capital from decline. Bitcoin's price fluctuates only slightly and holds its long-term value against altcoins.
This explains why BTC Dominance is always high even when the market is bearish or bullish. Also, in terms of data research, when the rise in Dominance BTC percentage also signals a new bull run, it's a sign that financial institutions, whales are entering the market. As huge new money is poured into Bitcoin, altcoin holders are also gradually switching to Bitcoin to prepare for a new rally. And after the bitcoin cycle increases, the money goes back to the bitcoin altcoin again.
In the cryptocurrency market, there are usually 4 scenarios that occur, pay attention to this analysis to guide your investment. The price of Bitcoin has risen and the entire market has risen. This is the most beautiful scenario that everyone wants to see, which means that market confidence increases, big players pour money in bitcoins and altcoin coins.
DROP IN THE BITCOIN THAT AFFECTED OTHER CURRENCIES
Below are instances of times when the bicoin experienced a fall that affected other currencies
This is the fall in price of BTCUSDT
ETHUSDT
LTCUSDT
All images are from my trade view account