With the recent events its clear that FTX sold the bitcoin of thousands of users in its platform to invest and trade with shitcoins all the while making the users think that they were holding bitcoin. This definitely lowers bitcoin price and dominance.

Taking into account that there might be other exchanges doing the same or selling paper IOUs for bitcoin and inflated marketcaps of all the illiquid shitcoins, I think Bitcoin dominance metric is a flawed.