The market segment of Bitcoin relative to the whole crypto market is known as the Bitcoin dominance ratio. Therefore, we can gain greater insight into the opportunities the present market climate offers when we analyze this ratio to the trend of Bitcoin itself.
The most vital aspect of Bitcoin Dominance is that it enables you to determine whether alternative currencies are experiencing an uptrend or a downturn relative to BTC.
When BTC Dominance increases, altcoins generally depreciate in value relative to BTC.
When BTC Dominance declines, alts as a whole appreciate in value relative to BTC.
As a result, you should often invest in Bitcoin (or cash) when Bitcoin Dominance is rising and in alternative assets (such as ETH, large caps, mid caps, low caps, etc.) when Bitcoin Dominance is falling.
In crypto bull markets, a steep and steady decline in dominance typically occurs due to the tendency of ferocious bull markets to drive alt capitalizations higher than Bitcoin. Similarly, a reversal of this pattern is frequently indicative of a bear market.
