Skip to main content

Explain the Concept of “Bitcoin Beta” for Altcoins and How Dominance Trends Affect It.

"Bitcoin beta" measures the volatility of an altcoin relative to Bitcoin. An altcoin with a beta of 1.5 is expected to move 1.5% for every 1% move in Bitcoin's price, in the same direction.

Dominance trends significantly affect this relationship. During periods of rising Bitcoin Dominance (a risk-off environment), altcoin betas tend to increase on the downside, meaning they fall much harder than Bitcoin.

During periods of falling dominance (altcoin season), altcoin betas can become very high on the upside, as they rally much faster than Bitcoin, but may also decouple, showing less correlation to Bitcoin's minor movements.

How Does a “Bear Market” Impact the Value of Altcoins?
How Does the Inclusion of Stablecoins in the Total Market Cap Calculation Affect the Utility of the Bitcoin Dominance Ratio?
What Is “Bitcoin Dominance” and How Does It Change in a Bear Market?
What Is the Impact of Institutional Investment on the “Quality” Perception of Bitcoin versus Altcoins?