Bitcoin remains the king of crypto as seen on the recent bear market. The market’s continuous, slow bleed throughout the year has on several occasions brought the total market cap below $200 billion in September, and lately it’s been hovering around the same levels as November last year. And we’re not out of the woods yet. However, Bitcoin dominance — the demand for Bitcoin compared to other cryptocurrencies — is growing at a disproportionate rate to the total market cap.

In fact, Bitcoin dominance has passed 51 percent at the time of writing (down from 55 percent a couple of days ago).

Dominance was at its lowest during the bull run in January when most other cryptocurrencies, also known as altcoins, or just alts, were booming. However, up until the bull run started, dominance was growing, and we see the same thing happening. If we’re following trends, this could be an indication that another run is getting closer.

Bitcoin’s popularity usually rises during bearish times and there are a few explanations for this. It’s obviously the one high-profile currency everyone has heard about and is therefore a natural choice for crypto neophytes. Also worth noting is the high correlation between the price of Bitcoin and altcoins. They have always been strongly coupled. However, with its relatively low volatility compared to other cryptocurrencies, Bitcoin is considered a safe haven in bear markets. After all, it’s only retracted 75 percent from its all-time high, whereas the majority of altcoins are down 80-95 percent from their peaks.

This difference isn’t really surprising, as a coin’s price movements are primarily a function of liquidity. Bitcoin has higher volume and market cap than any other coin and its thicker order books mean smaller movements. This is why traders who employ proper risk management often move funds into Bitcoin when they believe the market is going down and then back into altcoins when arrows point upwards again. Alts rise higher and fall harder.

This also makes Bitcoin a good option for risk averse investors who are uncomfortable holding positions in altcoins but don’t want to exit the markets. Tether(USDT), a stablecoin pegged to the US dollar, obviously offers the strongest store of value proposition when all crypto prices are dropping, and offers an alternative to going fiat, but it’s been struggling to gain trust from the general crypto community due to ongoing controversy and speculation about whether it truly has the dollars in reserve to back its tokens.

Adding to this, Bitcoin is still the only universal on- and off-ramp to the crypto world. Whichever coin or token you want to buy, the first step is usually spending your fiat on some Bitcoin and then trading that for other assets — or, if you’re a more experienced gambler trader, you can long or short it with margin trading. It’s the same procedure the other way around as well: If you want to sell, you likely have to go through Bitcoin before cashing out to fiat.

And although the exchanges have been launching more trading pairs with Ethereum and USDT this year, most traders tend to stick with the Bitcoin pairs as they hold the most volume. Another point is that among most traders, the goal is always to accumulate more BTC, not USD, and the preferred denomination of prices is in Satoshis, or sats for short.

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