The number of investments people have in the crypto market today is in two parts, one part is in the Bitcoin market, and the rest in the altcoin market. Now you can see bitcoin dominance and understand it in simple language. Let’s assume that the total capital of the coin market is $10 million, and out of this $10 million, 6% is in bitcoin and the remaining 4% is in altcoins. Accordingly, the dominance of bitcoin is 6%. The way is to extract the dominance of bitcoin.
What is Bitcoin Dominance?
You must have frequently heard that if btc dominance is going down and altcoin price is going to rise, which means now people investing money in altcoins. In this article let’s try to explain to you what is bitcoin dominance? At the beginning of crypto, only bitcoin was in the market, and at the beginning of crypto exchange bitcoin was traded with local currency.
Today we are sharing our knowledge about what we know about BTC Dominance increases or decreases in the crypto world. Winning in the market is also an investment; it is either going from one coin to another or new investment is coming into the market. If new investment will come into the market then the total market capital will start increasing. If BTC Dominance starts increasing then it is clear that the market money is going to bitcoin.
Because the dominance of bitcoin is directly related to the investment in bitcoin or exit of investment from bitcoin to altcoins, therefore, whenever the dominance of bitcoin goes down, the price of the altcoins goes up. Do they decide when to invest in the altcoins market? It is not necessary that if the dominance goes down then all the altcoins in the market will go up. It is not required that if bitcoin dominance is decreasing then altcoins will go up, many times investor money from bitcoin goes up due to this the total capital of the coin market goes down but this money is not coming in the altcoins so it does not affect the price of the altcoins.
