What Is “Bitcoin Dominance” and How Does It Change in a Bear Market?
Bitcoin Dominance is the ratio of Bitcoin's market capitalization to the total cryptocurrency market capitalization. It serves as an indicator of market sentiment.
In a bear market, Bitcoin Dominance typically rises. This happens because investors often sell riskier altcoins and move their capital to Bitcoin, which is perceived as a safer, more established asset.
This "flight to safety" increases Bitcoin's market share even if its price is falling, just falling slower than altcoins.