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Author: Admin | 2025-04-28
Index, this can be a great way of determining which coins and tokens are worth monitoring and potentially investing in. Another interesting measurement of market sentiment is to use the Bitcoin dominance percentage. This is a measure of how dominant Bitcoin is compared to the total market capitalization of all cryptocurrencies. It is calculated by dividing the market cap of Bitcoin by the total market cap of all cryptocurrencies and multiplying it by 100. It can be used as a way of seeing whether it is worth investing in Bitcoin or, instead, in altcoins. For many years, there has been anticipation of a mythological flippening, where Ethereum overtakes Bitcoin and becomes the dominant cryptocurrency in the market. You might think this would be easiest seen by monitoring ETH's price and market cap, but realistically, such activity could also occur through a lowering of Bitcoin's price and market cap, making the BTC dominance percentage uniquely useful at detecting this. Finding this figure is easy as it is displayed at the top of the BitDegree website. Moving to the traditional markets, the Chicago Board Options Exchange's CBOE Volatility Index, also known as the VIX index , can be used as an alternative to the fear and greed index. This chart measures market expectations of near-term price changes of the S&P 500 index. The VIX Index is infamously nicknamed the "fear index" due to its tendency to rise when stocks fall, and lower when stocks rise. This means that a high VIX suggests
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