Bitcoin price is constantly reaching high but Bitcoin Dominance is dropping.
Does this indicate that more and more people are interested in altcoins rather than only investing in Bitcoin?
Dominace of bitcoin is decided by two factors:
- BTC price that is used to calculate the BTC marketcap
- Total market cap of altcoins: it is the big and volatile factor. Bitcoin is only one but altcoins have thousands and new altcoins will appear. Their total marketcap change by old, current and future altcoins.
In bull market, dominance for altcoins are biases by new and/or scam altcoins. If you don't have data for before and current period of the market with the cut-off is when the bull market begins. Data for two periods (if you have) can help you to judge which total marketcap are from old altcoins and which marketcap are from new born altcoins.