In the crypto world, market cap is like a map that guides us to the best opportunities. But what exactly is it?
Market Cap: The total value of all coins of a cryptocurrency in circulation. It is calculated by multiplying the current price of a coin by the total number of coins in circulation.
Current data:
BTC Dominance:57.65% (Bitcoin dominates more than half of the crypto market)
Altcoin market cap (excluding BTC and ETH):It represents the portion of the market not dominated by Bitcoin and Ethereum.
Correlations:
BTC Dominance Increases: Altcoins generally rise or fall less than BTC.
BTC Dominance Down:Altcoins tend to rise more than BTC (altseason).
Be careful! Just because BTC is going up doesn't mean all cryptocurrencies will go up the same way.
When to download your assets?
At the end of the BTC bull run, its dominance will be inflated. Big investors ("Smart Money") will start unloading BTC, taking liquidity away from the market. Where will that liquidity go? To altcoins! This will be the perfect time to sell your altcoins at a profit.
Because?
The market capitalization of altcoins will increase, inflating their price.
You will be able to sell your altcoins at a much higher price than the purchase price.
You will be able to buy BTC again at a lower price when its dominance goes down.
Example:
Imagine you have 1 BTC and 1000 units of an altcoin. At the end of the bull run, you sell your altcoins for a 500% profit. Then, when BTC dominance drops and its price corrects, you buy BTC back at a lower price. You have multiplied your capital!
Remember:
Market capitalization is a key decision-making tool.
Watch BTC dominance to anticipate market movements.
Don't get carried away by FOMO. Sell when altcoins are at their peak!
My advice is the following: STUDY WHAT HAPPENED IN THE PAST BULL RUNS. WHEN WAS THE TIME WHEN THE ALT COINS HAD SUCH A BIG EXPANSION. OBSERVE WHAT WAS HAPPENING AT THAT TIME WITH THE MARKET CAPITALIZATION.
#MarketCap#BTCDominance#Altcoins#Altseason#Trading #Binance
