Bitcoin Dominance Spikes During Dumps — Expect Altcoin Weakness

I notice the same pattern: BTC dominance tends to rise when the market dumps because traders and liquidators rotate out of higher-risk altcoins into Bitcoin or stablecoins.

I think this happens for several reasons — BTC is the deepest, most liquid crypto, many levered alt positions get squeezed first, and risk-off flows favor BTC or cash-like stablecoins, making BTC share of total market cap grow even if its price falls.

I monitor dominance as a risk signal: a rising dominance during a sell-off usually means altcoins will underperform until confidence returns.