Assalamu Alaikum
how are you all Hope everyone is doing well. Today we will know about Bitcoin Dominance, what is Bitcoin Dominance? and how it works, If you are a new trader in Crypto Market then it is important to know about Dominance first. Coinmarketcap will regularly know about Bitcoin and ALT Coin Dominance, Dominance Today Bitcoin: 53.4% ETH: 16.7% Dominance simply means rule, I try to explain to you briefly, 100% of all Crypto Currencies have Investors, Bitcoin alone has 53.4% and ETH has 16.7%, and all other ALT Coins have 29.9%. This is really a bad side.
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,
Comments