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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.

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