2018-6-27 22:55 |
The Dominance Index is an indicator that tracks the percent of the total cryptocurrency market capitalization contributed by the leading cryptocurrency.
So, a rising dominance rate essentially means the demand for bitcoin is greater than the demand for other innovations.
A flow toward bitcoin is usually seen at the start of the bull run, as it’s a common route for fiat money to enter the cryptocurrency market.
However, it also tends to rise during periods of risk aversion – when investors move out of high-risk alternative cryptocurrencies and into bitcoin, and then possibly on to fiat currency.
So, the writing on the wall is clear: right now, a lot of investors prefer cash over any of the cryptocurrencies, bitcoin included.
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