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- ๐ ETH jumped to $4,600 this morning, up 8.69% in 24h!
Just shy of the $4,891 ATHโthink it breaks through?
๐ Follow Gate_Square, vote and drop your reason.
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Many of you are asking: ๐
What does Bitcoin acquisition mean? (Bitcoin Dominance) ๐ฑ
As you requested today, I will explain what Bitcoin dominance means and why it is the main reason that alternative currencies are not moving even though the market seems to be rising ๐
Bitcoin dominance is the ratio that shows how much Bitcoin controls the crypto market in terms of market capitalization.
This means that if the ratio is, for example, 60%, then 60% of the total liquidity is in Bitcoin and the rest is distributed among all the other currencies.
When this rate is high, it indicates that most of the money ๐ธ in the market is going to Bitcoin.
And this makes alternative currencies either freeze or drop because there isn't enough liquidity in them.
It simply means the market is focused on just one asset.
But if the acquisition starts to gradually decrease from 61% โ 55% โ 50% โ 45%
Here we start to see strong movement in alternative currencies as liquidity begins to be distributed more widely.
โ Summary of the topic:
The Bitcoin acquisition is high = alternative currencies are in a recession or may drop.
Downtrend = Altcoin season has started ๐ฅ
Keep your eyes always on this indicator because it is the key to understanding the real market ๐#Trump Allows 401(k) Crypto Investing#