Why when the market decreases the percentage of BTC increased?

[phipham123]

I have been in the cryptocurrency market for almost two months, I observed that when the market fell, the percentage of BTC always increased. The current percentage of BTC has accounted for more than half of the market. What does this mean? Can anyone give me an explanation, and why is BTC? not another Coin? Because in my opinion, BTC is affected by market volatility more than the Altcoin!

                                                                                                               

[Pursuer]

it means nothing because this "percentage" is market capitalization and it is not a viable characteristic to look at or use for comparison. in fact using it in that "percentage" is completely false.

market cap is multiplication of supply and price.
bitcoin has 17 million circulating supply.
this supply is going against 1944 number of coins with total supply of 18,992,064,409,496 coins (18,992,064 million). now do you see how stupid the comparison using that "percentage" is?

in simple terms bitcoin with only having 0.00009% of the total supply has nearly 50% of the market cap! this should give you a pretty good idea how bitcoin has nearly 100% dominance over the whole market.

[davis196]

It means that bitcoin has a more stable price,compared with all the other altcoins.
It also means that,when the altcoin prices drop,most of the altcoin traders would just sell their coins and buy bitcoin(this isn't really happening right now,but it happened many times before).
Most of the cryptocurrencies are just bubbles with nothing inside.

[anume123]

Bitcoin is the king of all cryptocurrency so it mean if the price of altcoins and token will fall? Do you think bitcoin will happen too? If you can see now ethereum has already dropped a huge price all over 75% price lost if you calculate its price in the past price of ethereum but in bitcoin this is not happen.

[randythered]

I have been in the cryptocurrency market for almost two months, I observed that when the market fell, the percentage of BTC always increased. The current percentage of BTC has accounted for more than half of the market. What does this mean? Can anyone give me an explanation, and why is BTC? not another Coin? Because in my opinion, BTC is affected by market volatility more than the Altcoin!

The reason being that bitcoin is the strongest currency in the market and whenever value is shed from the market a larger percentage of that comes from altcoins than it does bitcoin. The exact reasons for these are many but it's mostly down to the fact that bitcoin has proven itself and so has a larger support in the market. Speculative money normally comes when the market is bullish and that's when you'll see bitcoin market dominance falling instead of increasing.

[mk4]

Bitcoin is the king of all cryptocurrency so it mean if the price of altcoins and token will fall? Do you think bitcoin will happen too? If you can see now ethereum has already dropped a huge price all over 75% price lost if you calculate its price in the past price of ethereum but in bitcoin this is not happen.

Most of the time the scenario would be:

Bitcoin rises; altcoins rises with it.
Bitcoin drops; altcoins drop with it.
Certain altcoins drop; bitcoin stays neutral.

It's mostly because altcoins follow the price of bitcoin due to almost all the trading pairs being BTC/altcoin; but certain altcoins can drop on their own due to multiple possible reasons(scamquits, missed deadlines, etc).

[tomahawk9]

I have been in the cryptocurrency market for almost two months, I observed that when the market fell, the percentage of BTC always increased. The current percentage of BTC has accounted for more than half of the market. What does this mean? Can anyone give me an explanation, and why is BTC? not another Coin? Because in my opinion, BTC is affected by market volatility more than the Altcoin!

When prices drop people usually shift to BTC as it is the strongest cryptocurrency in terms of volatility, prices swings on the way down aren't as aggresive as they are in altcoins, plus if everything else begins to fall, you can bet that Bitcoin will still hold strong. Also, people usually trust Bitcoin a lot more than alts during a downtrend, that's the % keeps increasing during the bear season.

Now that we're in an uptrend, people are beginning to sell their btc for alts, you can see how the btc dominance has gone down by almost 2% over the last 24h, pretty normal if you ask me as people want to trade alts again.

[Tobt]

And for this reason Bitcoin is called the king of Cryptocurrency. altcoin price fully dependent on the price fluctuations of Bitcoin, but Bitcoin price does not depend on the altcoin. When price is low of Bitcoin, people buy it more for the near future. They sell all of them when, Bull run start.

[coppied]

we can called Bitcoin as the King Coin of digital currency.This is because of its Monopoly in Crypto world.It can be assured that, Bitcoin will make no lose though some times its price fall down.When price of bitcoin fall, more expats businessman trend to buy Bitcoin more. And they hold it until price pump up. And for thais the percentage of Bitcoin increase.

[cfif123]

Bitcoin is the king of all cryptocurrency so it mean if the price of altcoins and token will fall? Do you think bitcoin will happen too? If you can see now ethereum has already dropped a huge price all over 75% price lost if you calculate its price in the past price of ethereum but in bitcoin this is not happen.

Most of the time the scenario would be:

Bitcoin rises; altcoins rises with it.
Bitcoin drops; altcoins drop with it.
Certain altcoins drop; bitcoin stays neutral.

It's mostly because altcoins follow the price of bitcoin due to almost all the trading pairs being BTC/altcoin; but certain altcoins can drop on their own due to multiple possible reasons(scamquits, missed deadlines, etc).

because bitcoin has indeed become a price benchmark for altcoins from the past until now. and bitcoin is also a very strong coin that has great potential for the future and the price too

[1NV3ST0NM3]

I have been in the cryptocurrency market for almost two months, I observed that when the market fell, the percentage of BTC always increased. The current percentage of BTC has accounted for more than half of the market. What does this mean? Can anyone give me an explanation, and why is BTC? not another Coin? Because in my opinion, BTC is affected by market volatility more than the Altcoin!

                                                                                                               

Yes Bitcoin is most affected by anything happening in cryptocurrency because it is the main currency in the crypto market. It is the king and that’s why when anything happens in the market, it has some influence on Bitcoin, probably because of its huge dominance. It can also be because of Bitcoin and Altcoin trading pairs being traded by the investors.

[gilangIDR]

I have been in the cryptocurrency market for almost two months, I observed that when the market fell, the percentage of BTC always increased. The current percentage of BTC has accounted for more than half of the market. What does this mean? Can anyone give me an explanation, and why is BTC? not another Coin? Because in my opinion, BTC is affected by market volatility more than the Altcoin!

                                                                                                               

This is because bitcoin has very good trust from the public. When market conditions decline, more and more people will experience panic and they exchange the altcoins they have and then buy Bitcoin. That is the main reason why the increase in the volume of Bitcoin transactions is increasing and the price of bitcoin can be said to be very stable despite chaos in the altcoin market.

[waynechong1995]

Cause most of the people sell their alts in bitcoins, usually in lowered price and well that altcoin would cost less than it used to be, decreasing the overall marketcap of that altcoin, as bitcoin usually tanked the hardest as its the main exchange medium that nobody would wanted it to be low, sustain the overall marketcap which increase their dominance overall the market, bitcoin doesn't increase in value but sustains better

[Athanasios Motok]

I believe that the market capitalization of bitcoins increases due to the outflow of money from altcoins to bitcoin. There is a simple exchange scheme: we exchange Fiat money for bitcoins, and then we buy other altcoins for bitcoins. Exactly the same happens in the sale. We sell altcoins for bitcoin, thus the capitalization of the bitcoin market is growing, and then we withdraw bitcoins to the cache.

[pooya87]

I believe that the market capitalization of bitcoins increases due to the outflow of money from altcoins to bitcoin. There is a simple exchange scheme: we exchange Fiat money for bitcoins, and then we buy other altcoins for bitcoins. Exactly the same happens in the sale. We sell altcoins for bitcoin, thus the capitalization of the bitcoin market is growing, and then we withdraw bitcoins to the cache.

do you know what market cap even is?
market cap is equal to (price * supply). if you sell altcoins for bitcoin, bitcoin price will not go up. neither does its supply so that sale is not going to change anything about this formula and as a result it won't  change anything about bitcoin market cap.
however when people dump altcoins what it changes is that altcoin prices come down and since their supplies are mostly huge the (price * supply) result drops harder so their market caps drop and the final percentage that bitcoin has (BTC MC / 2000 altcoin MC) rises.

[audaciousbeing]

Things like this are simple mathematics that does not need any technical knowledge to figure out what is going on. When the price of bitcoin falls, what every one focus on is that bitcoin forgetting that the fall affects the entire market at various degrees. But because bitcoin is the most popular, its quick to recover compared to others. So, since market capitalization is the total coins* their individual market price, it then seems that the percentage occupied by bitcoin has increased. In short, it depends on the timing that the calculation is being done as at other period, that same percentage could either increase or drop.

[Kakmakr]

#Pursuer already explained it, but I just want to add that most people want to use traditional fiat trading principles to a technology that is totally different from the rest. In any way, if we accept that Bitcoin's price is linked to Supply & Demand, then the price has to go down if there are more BTC in supply, than there are a demand for it. 

We will also never know the true status of Bitcoin's supply & demand, because most of these statistics are based on data that was acquired through regulated platforms and a lot of people are not even using these platforms. 

[Ramya494]

It proves how strong bitcoin is ,since bitcoin is very potential even though the market is bearish it's percentage doesn't fall much.many ALT coins are about to die and Bit Coin is increasing in percent .

[goodluck0319]

just people don't want to be in a coin that falls. this is the temporary salvation of their finances

[Valer4ik]

and the course and the growth of complexity are all quite logical.

The connection here is simple: both things are beneficial to long-term players. And speculators too (including Bitmain), and they, I'm sure, are long-term players. When the complexity begins to grow rapidly - it is beneficial to dig and wait. The price in this case can not stay too long at the bottom. By long I mean really a long time, not a couple of months)

The high growth rate of complexity is a very good sign of a healthy and confident market