What Is BTC Dominance Chart?
As the very first commercial cryptocurrency, Bitcoin (BTC) surely has dominance over the global crypto market. This dominance is represented through the BTC Dominance Chart which indicates the ratio of BTC dominance in current market conditions.
Initially, Bitcoin used to have 100% market dominance as the sole commercial cryptocurrency. However, this humongous dominance of the token is long over as the market today is flooded with countless new cryptocurrencies.
Using the BTC Dominance Chart for setting the trajectory of your investments
The BTC Dominance Chart can be used as a strategic tool for setting the trajectory of your future investments. A higher dominance ratio indicates the market’s trust in Bitcoin’s stability while signaling the upcoming decline in altcoins. Mastering this pattern of the dominance chart can help you make informed and strategic investment choices.
Can the chart predict the altcoin season?
Yes, the BTC Dominance Chart can infact predict the altcoin season. A declining Bitcoin dominance in a bullish season is an indicator of a future altcoin season. This also signals the investors to start investing in altcoins, expanding their market growth size.
Factors influencing Bitcoin’s dominance over the crypto market
There are several factors that may influence Bitcoin’s dominance over the crypto market. However, the most impactful factors include investor sentiment, technological advancements, regulatory news, and the overall market growth in recent times. Even the launch of new altcoins can influence Bitcoin’s dominance over the global crypto market.
Has Bitcoin’s dominance changed over the years?
Yes, as a matter of fact, Bitcoin was the first commercially available cryptocurrency. At the time of its launch, Bitcoin enjoyed 100% market dominance. Over the years, the launch of new altcoins and cryptocurrencies has severely changed Bitcoin’s dominance over the market. As per the latest available data, the BTC market dominance has shrunk to a dominance range of 51.44% – 52.69%.
