Explained: Bitcoin Dominance and how you can use it to make better trades
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Bitcoin Dominance is basically Bitcoin’s share out of the total market capitalisation of all cryptocurrencies. It tells you whether the altcoins are performing better, worse, or similar to Bitcoin. Since Bitcoin is the first cryptocurrency to come into existence, its dominance has always been the highest. Most other coins tend to follow the movement of Bitcoin in response to key developments across the globe, which is why the overall crypto market cap usually mirrors the movements of Bitcoin. Knowing what it indicates will help you make better trades and avoid panic-selling at the slightest doubt of a market downturn. Some analysts have also pointed out that Bitcoin's dominance does not account for all the BTC that has been lost due to forgotten private keys, dead wallets, or hacks. Source