Bitcoin Forum

hello guys
good time

in cryptocurrency market to check general situation and market situation we should monitor what is ?

for example in stock and forex, people monitor DAW Jones, S&P 500, NASDAQ and ....

in cryptomarket what we should monitor ?

for example total index or dominance or ....

What factors and parameter are important and should monitor ?

best wishes

help me

You check Bitcoin's price. Because Bitcoin has heavy influence over the cryptocurrency markets, and pretty much almost every cryptocurrency moves with it (dollar wise). It's pretty much the S&P500 of the cryptocurrency markets.

Probably the best suggestion for an index in the crypto area already came from mk4. The bitcoin price regulates the market, and if it falls, almost all other coins fall as well.

On the other hand, if the bitcoin price rises, this does not necessarily mean that other coins will also rise. To mitigate this effectt, you can take a look at the indices for the top 5 or the top 10 coins (by marketcap). For example, the Austrian exchange Bitpanda has such indices listed, mainly for the investment in these coins. On the exchange itself, however, you can also see the price of the respective indices:

https://i.postimg.cc/BbvjDPBT/screenshot-7.png (https://postimages.org/)

Source (https://www.bitpanda.com/en/bci-bitpanda-crypto-index)

In addition to bitcoin price, most people use bitcoin dominance to determine the best time to start trading alts or alt season. You should check it out too, especially if you're planning to trade mid-low marketcap altcoins to find bigger gains. Keep in mind that the connection is not that strong, so don't blindly believe the data presented over the internet.

I would say it's best if you look at and analyze several parameters at the same time, including BTC / ETH price, dominance, crypto market volume, general mood according to google trend etc.

You can get some of them when you look through tradingview.

1. The most popular one is probably Bitcoin dominance (BTC.D Index) - The higher it is, the most easily Bitcoin price movements influence the whole market.

2. ETH Dominance (ETH.D Index), when it increases, it usually signals the return of altcoin season.

3. CMC200 (Crypto200 Index by Solactive) and CMC200EX index (Crypto200 ex BTC Index by Solactive) both measure the performance of the top 200 cryptocurrencies by market capitalization traded in USD - https://coinmarketcap.com/indices.

There are some indices on Coinmarketcap but the biggest point of difference here is that the effect of coins on the index is less studied. We use those indices more in stock markets. Here the information if you ask me is only anecdotal, someone might have a different opinion on this.

So whether you can monitor the market by using these indices like you can in the stock market? I am doubtful. I would rather use the price of bitcoin as an index to know how the altcoins are going to perform because they usually follow a trend.

Dont use indices changes to plan strategies here. You are better off with buying bitcoin. In the near future with more exchanges starting and more government liberality, we might see betting on indices and then the picture might vary.

As user points out in 2nd response, you can follow several indexes of big exchanges (I actually never knew about Bitpanda) but in most cases you can even use Galaxy Digital index which is quoted by Bloomberg a lot.

I also used to use this in 2019: AVA crypto index based on top 10 baskets: https://www.avatrade.co.uk/trading-info/financial-instruments-index/cryptocurrencies/crypto-10-index