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Why BTC Dominance Rises During Bitcoin Sell-Offs

I notice BTC dominance often seems to “kick in” when Bitcoin starts to dump. Dominance is simply Bitcoin's market cap divided by total crypto market cap, so if altcoins fall harder than BTC during a sell‑off, Bitcoin’s share rises even as its price falls.

I also think this happens because money rotates into perceived safer crypto positions — Bitcoin or stablecoins — during risk‑off moves. Liquidity drying up in smaller altcoins and large outflows amplify the effect, so dominance rises as the overall market contracts.

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Analysis

BTC dominance = BTC market cap / total crypto market cap. In crashes altcoins usually suffer bigger percentage losses and liquidity evaporates, so Bitcoin’s relative share increases even if BTC is dow...

Recommendation

I recommend using BTC dominance as a context signal rather than a standalone trading trigger: monitor altcoin performance, stablecoin supply and exchange flows. If you fear a broad sell‑off, reduce al...

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.

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