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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