Bitcoin Dominance
Key Insights:
– Bitcoin dominance represents the proportion of Bitcoin’s market capitalization in relation to the total market capitalization of all cryptocurrencies.
– This metric is employed to gauge market sentiment, identify potential trends and trading prospects.
– It’s crucial to recognize that Bitcoin’s dominance in market capitalization doesn’t indicate its intrinsic value, nor does it signify a sudden influx of capital into the market.
– The rise or fall of Bitcoin dominance is not inherently positive or negative; rather, it functions as a tool providing market participants with a clearer understanding of the evolving cryptocurrency landscape.
Overview: Bitcoin dominance, in straightforward terms, denotes the ratio of Bitcoin’s market capitalization to the overall market capitalization of cryptocurrencies. However, for those new to the cryptocurrency realm, it’s essential to grasp the significance of this metric and how it is applied. The following sections elucidate the intricacies of this pivotal measure.
Cool Charts to use it combined: Days Since ATH, After Halving Comparison
Read our Article: How to Profit With Dominance