Index <25 Indicates Bitcoin Outperformance — Favor BTC
I believe that when the index falls below 25, Bitcoin tends to dominate market performance and outperform most altcoins. In that regime I see capital concentrating into the largest, most liquid asset — Bitcoin — while altcoins lag.
That pattern implies higher relative safety and liquidity in BTC and greater risk in smaller-cap tokens. I treat a sub-25 reading as a warning sign to reduce speculative alt exposure and favor larger-cap holdings.
I therefore monitor the index closely and bias my allocation toward Bitcoin during those periods, looking to buy BTC on controlled dips and trim weaker altcoin positions.
Analysis
Recommendation
Watch the index and bias allocations toward Bitcoin when it is below 25; consider buying BTC on weakness and trimming smaller-cap altcoin positions until the index shows broader market recovery.
Disclaimer
The Analysis and recommendations provided are for informational purposes only. Any investment decisions should be made at your own risk. Past performance is not indicative of future results. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions.