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"Altcoins are stirring, headlines scream “altseason”, and Bitcoin Dominance recently took its sharpest weekly drop in over 3 years.
But what does that really mean for the market? In this video, we dive into the Bitcoin Dominance chart - how to read it, what history tells us, and the real signals that separate noise from opportunity.
Whether you’re all-in on BTC or eyeing that next altcoin gem, this is one video you can’t afford to miss."
~ Coin Bureau
The video explains Bitcoin Dominance (BTC.D), a metric that measures the percentage of the total crypto market's value held by Bitcoin. It's considered an imperfect but useful tool for gauging market sentiment and the appetite for altcoins. When Bitcoin dominance rises, the market favours BTC; when it falls, altcoins or stablecoins gain favour. The video clarifies that BTC.D doesn't include every single cryptocurrency but focuses on Bitcoin's share against the top 125 cryptos by market cap, which represents the majority of the market's value. It also points out that new token launches, airdrops, and the expansion of stablecoins can lower BTC.D without capital necessarily rotating into altcoins.
Historically, significant altcoin seasons have been paired with a massive drop in Bitcoin Dominance. The video cites examples from 2017-2018 and 2021, where BTC.D plummeted, coinciding with major altcoin rallies. In the current cycle, BTC.D has shown signs of cracking after a steady rise since late 2022, due to factors like the launch of Bitcoin ETFs and corporate treasury buying. The video suggests that if history rhymes, a drop to the mid-50s would signal that altcoins are starting to move, with the "full send" zone for alt season being around 40%. To get a more comprehensive understanding of market dynamics, the video advises pairing Bitcoin Dominance with other metrics like TOTAL (total crypto market cap) and OTHERS (market cap of assets outside the top 10).
0:00 Intro
0:45 What Is BTC Dominance?
5:02 Lessons From Previous Cycles
9:41 What Impacts BTC Dominance?
12:57 Altcoin Upside
16:50 Market Dynamics
Source - Coin Bureau YouTube: https://www.youtube.com/watch?v=VKcVAYPncSU
Disclaimer: This video is provided for informational purposes only, and not offered or intended to be used as legal, tax, investment, financial, or any other advice.
