DISCLAIMER: I AM NOT A FINANCIAL ADVISOR. THIS IS NOT A FINANCIAL ADVICE.

As we all know, Bitcoin is what everyone calls the King Coin. Satoshi Nakamoto, who created the greatest revolutionary technology invention of the century---cryptocurrency; ignited more than that.

The introduction of Bitcoin to the business and financial world gave birth to the next generation coins or Altcoins (alternative coins).

But, what really is the connection of all of these facts about Bitcoin to the whole market? Let me explain.

Bitcoin Dominance is not just a percentage indicator you see on the crypto platforms you look into when you're looking for good coins to invest on. It is the index indicator on how dominant Bitcoin is over the whole Total Market Cap in general.

WHAT IS TOTAL MARKET CAPITALIZATION?

Total Market Capitalization is the overall value of all cryptocurrency and digital assets at any given time. This means that it is the value of every coin in the market such as BCH, BTC, ETH, XRP, and all other cryptocurrencies combined.

If you'd look back on the image above, it clearly gives the Total Market Cap of $1,579,552,497,089, with a Bitcoin Dominance of 45.1%

So what really is the correlation of BTC.D in the Total Market Cap? Simple, the Bitcoin Dominance shows that Bitcoin's value takes up 45.1% on the entire market.

This can be proven if you compute this using the calculation formula below.

Take this one solution for an example variable involved:

This is how you calculate the total market capitalization of Bitcoin in the market.

Now, we can calculate the Bitcoin Dominance after that solution above. Again, we will use hypothetical numbers, which will be shown under:

You may also hear people say, “Bitcoin Dominance Index", which is just the same as what we calculated.

Now, how does all this affects the market? Well, the thing is, no one really knows where the market is going, but one could try to predict it, but below is a chart showing how Bitcoin Dominance is correlated to almost every coin in the market, depending on its movement.

If you can fully understand this, you can literally use this in positioning and predicting the market.

It is know that this is a recurring and repetitive trend in the Bitcoin market and all of the other altcoins that is coupled with it.

Although most people doesn't want to acknowledge this, the fact that Bitcoin can manipulate the market and its movement, you should be always careful where you put your money into. Use this knowledge and use this to your advantage. You can ride the fluctuations of the price may it be on uptrend, downtrend, or in sideways.

In conclusion, even though it's painful to admit, that the market could be manipulated. You need to know that timing the market will sometimes save you from losing money. Especially now that lots of external factors affects the Psychology of the (Bitcoin) Market.

And no, for the love of God, stop saying Elon Musk is manipulating the market. There's no way a single entity like him could do that, because if he can do it, then Bitcoin may not be as decentralized as what maximalists claim.