Could Bitcoin Dominance Indicate We're in a Capital Preservation Phase Again?

I think the way the market looks right now, we might be heading into another capital preservation phase instead of a phase where people accumulate high-risk assets. If you look back at past bear markets, Bitcoin dominance usually goes up when liquidity tightens and there's more uncertainty in the macro environment. This isn't just a story for crypto; it shows how capital behaves overall. In risk-off situations, money tends to flow toward the asset that seems the strongest in its sector. In crypto, that's Bitcoin. Ethereum has changed a lot, especially after the merge, but its exposure to the ecosystem (like DeFi leverage, staking derivatives, and Layer 2 competition) adds some risk. During expansion phases, this can really boost profits, but when things contract, it makes it more sensitive to overall speculative movements. Another thing to keep in mind is macro liquidity. When real yields go up and the dollar gets stronger, speculative assets usually lag behind. In earlier cycles, BTC often stabilizes first, then ETH, and finally the altcoins. So maybe the real question isn't just BTC versus ETH, but: - Is global liquidity on the rise or decline? - Is the market structure leaning towards stability or growth? Until we see a big change in liquidity conditions, Bitcoin dominance might keep showing us how defensive the market is. I'd love to hear what others think, especially those who have been watching dominance shifts closely.

Where you wrote that BTC stabilize first, ETH follows and then other altcoins is ETH follows and then other altcoins because Ethereum is also an Altcoin. By the way some altcoin could stabilize before ETH especially altcoins that are affected readily by hype, they may stabilize before ETH but could destabilize as fast as they stabilize that’s why altcoins are inconsistent.