BTC is the king of crypto. Why?



*1. BTC = Market Mood Indicator*
If BTC rises quickly → Altcoins usually follow suit, though with a 1-2 day delay. That's called "altseason"
If BTC dumps → Altcoins bleed heavily. They can drop 2x-3x more than BTC. Example: BTC -3%, WLD/ETH can be -8%

That's why analyzing BTCUSDT earlier was very important. If BTC heads below 63,770, ETH and WLD are also under pressure.

*2. BTC Dominance = BTC.D*
Currently, BTC dominance in the market is around 52-55%. Meaning, half of all crypto funds in the world are parked in BTC.
If BTC.D rises = money flows into BTC, altcoins become quiet, and prices drop.
If BTC.D falls = money exits BTC and flows into altcoins, causing altcoins to pump wildly.

*3. Why is BTC the center?*
1. *First* - BTC is the father of crypto. Everyone knows BTC first
2. *High liquidity* - Want to sell 100 billion? There are buyers. Altcoins? Even 1 billion can cause crashes
3. *ETFs + Institutions* - BlackRock, MicroStrategy, etc., buy BTC, not WLD/ETH. So BTC news = market sentiment for all

*But there are exceptions:*
1. *Specific coin news* - For example, if ETH has a major update, or WLD has a partnership, it can rise on its own even if BTC drops
2. *Altseason* - When BTC has already risen high + sideways, money flows into altcoins. That’s the “altcoin revenge” moment
#SKHynixTopsKOSPIByMarketCap
BTC0.81%
WLD-9.57%
ETH1.39%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments