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Bitcoin Dominance

Bitcoin dominance: Why Bitcoin is outperforming altcoins

Altcoins season ends as investors restore their faith in the world’s largest cryptocurrency Bitcoin. The increasing  Bitcoin dominance is outperforming many of the altcoins.

Bitcoin is ranging below 4%, while many other altcoins are still in the red. As bitcoin price rose to $37000, many altcoins are facing a bearish trend. Here we will discuss how Bitcoin dominance affects altcoins:

What is bitcoin dominance:

Bitcoin dominance is the ratio between the total market capitalization of Bitcoin as compared to every other digital asset. It is the measure of how much of the total crypto market consists of Bitcoin. It helps us to understand the trends of Bitcoin relative to the altcoins.  Bitcoin Dominance

Why Altcoins are low:

When Bitcoin goes up, the altcoins lose value against Bitcoin, on the other hand, when  Bitcoin goes down, altcoins gain value. A bullish trend causes Bitcoin to propel against altcoins causing a steep and consistent downward trend in altcoins dominance. As Bitcoin rose and currently trading above $37000, Altcoins lost value causing a bearish trend.

As we already discussed, once the Bitcoin price goes down, alts will rise again. During alt season, Bitcoin has a tendency to lose value due to the presence of altcoins. There is not a perfect tool to indicate the alt season, however, a unique tool by the Blockchain Center can define whether the market is dominated by Bitcoin or altcoins.

In short, you’ll want yourself to be in BTC when bitcoin dominance is in an uptrend, on the other hand, you’ll want yourself in alts when the bitcoin is facing bearish trend.

About mnmansha

MN Mansha is a cryptocurrency expert, trader, and content writer with extensive experience in covering everything related to digital assets — from price analysis to Blockchain disruption. Mansha authored 100+ stories for NewsBSC.com and other fintech media outlets and he's actively writing more every day. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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