Dominance of Bit: An Inside Look at the Crypto World

Well, my friends, come on, let me tell you about this notorious "Bitcoin domination" without any fluff. I've been in the crypto market for quite some time, and I'll be straightforward: this indicator is like a litmus test for all the madness happening!

The dominance of Bitcoin is simply the ratio of the capitalization of "digital gold" to the total capitalization of this whole circus with altcoins, multiplied by 100%. But behind this dry formula lies a real drama!

When dominance rises - money runs into Bit like rats on a ship. All these "revolutionary" projects with their "unique" tokens suddenly become useless to anyone. It becomes scary - everyone looks for protection from "daddy Bitcoin."

And when the dominance falls... Oh-oh-oh! This is where the most interesting part begins! "Alt season" - the time when all sorts of meme coins and "next Ethereums" soar to the heavens. I've fallen for this hook a few times myself, thinking I caught a golden fish!

Practical benefits of tracking

Personally, I use this indicator like this:

• When the dominance is above 55% - I don't even look at altcoins, only the main coins.
• When it drops to 45% - I start looking for a couple of promising altcoins.
• Below 40% - altseason in all its glory, but here you need to be careful.

By the way, I want to point out that all these popular platforms for viewing dominance charts often lag at critical moments. Just like Murphy's Law - it's precisely when it's important to react quickly!

Predictions for 2025? Come on, who knows them!

Analysts say about 55-60% in a bear market or 35-40% in the case of an alt season. But let me tell you this - these analysts predict with the accuracy of a fortune teller in the market!

Currently, dominance is around 52%. Bit is still holding its position, but these new tokens with artificial intelligence and meme coins are pressing from all sides. Developers are constantly coming up with new ways to pull money from naive investors.

The Impact on Alts - The Harsh Truth

When Bitcoin's dominance rises - altcoins turn into pumpkins. Especially those little-known projects with "revolutionary" technologies. I myself have fallen for one like that - bought at the peak, and then I watch as minus 80% lights up on my balance.

And in alt season? Yes, you can catch the x's. But you need to be insanely fast - to jump in and jump out on time. Most don't make it!

Hey, nobody tells that the biggest gains are usually taken by insiders and whales, while we, mere mortals, get the scraps from the master's table.

Using dominance in trading is possible, but not as a panacea, rather as one of the signals. Because the cryptocurrency market is not only about charts, it is also a big game of psychology, where the shrewdest devour the naive.

And don't believe those who say that the alt season starts strictly when dominance is below 45%. Each cycle is unique, formulas don't work here!