Hello everyone! I've seen people use Bitcoin Dominance to plan their trades. I'm not sure I understand BTC Dominance and was wondering if this is correct. If so, can it also be used for Bitcoin mining? If yes, how so?
Bitcoin dominance "was" a thing in previous cycles, it simply tracks people's willingness to ride/leave risky trains, when the dominance goes down it means that people are leaning more towards altcoins and the opposite is true, however, now things have changed because of the stable-coins, USDT and USDC alone make roughly 30% of BTC market cap, so looking at BTC dominance chart now will give you the indication that people are still heavily invested in altcoin which is true if you consider those stable coins to be altcoins, but then it takes away from the fact that people are actually running away from altcoins (the non-stable ones).
So it's a complete mess, to be honest, if you want to use it, you would need to find a way to exclude every stablecoin, and then it will be as helpful as it was 4 years ago.
However, when it comes to mining, assuming you managed to catch the market bottom, it was would be a terrible idea to buy a mining gear, it's a lot better to invest in
BTC, mining is best when the markets are not doing anything, it's the only team when mining easily beats buying
BTC.