Which cryptocurrencies are most affected by changes in the bitcoin dominance index?

1 answers

• Khushi ShahMay 21, 2022 · 4 years ago
  At BYDFi, we have observed that changes in the bitcoin dominance index can have a significant impact on the performance of altcoins. When the dominance index increases, we often see a decrease in the value of altcoins as investors flock to bitcoin. However, it's worth noting that this relationship is not always linear. There are instances where certain altcoins have outperformed bitcoin even when the dominance index is high. This highlights the importance of conducting thorough research and analysis when investing in cryptocurrencies. Factors such as project fundamentals, partnerships, and market demand can also play a role in determining the performance of altcoins. Therefore, while the bitcoin dominance index can provide valuable insights into the overall market sentiment, it should not be the sole factor considered when making investment decisions.
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