Bitcoin dominance is the share of Bitcoin’s market capitalization compared with the market cap of all cryptocurrencies combined, expressed as a percentage. Think of it as Bitcoin’s slice of the whole crypto pie.
The metric tracks Bitcoin’s relative weight in the crypto market, not its standalone price or value. When Bitcoin grows faster than the rest of the market, its dominance usually rises. When altcoins grow faster, dominance tends to fall. Because it is a ratio, broad bull or bear moves can leave the percentage roughly unchanged if Bitcoin and altcoins move in tandem.
Take Bitcoin’s market cap, which equals current price multiplied by circulating supply. Then divide it by the total market cap of all cryptocurrencies and multiply by 100. The result is Bitcoin dominance in percent.
Several forces can shift the percentage. The rise of altcoins expanded the market beyond Bitcoin, reducing its historical near-total share. Investor attention cycles, new token launches, and shifts in risk appetite also matter. If Bitcoin falls while many altcoins hold steady or rise, dominance usually drops, and the reverse can also happen.
Periods when altcoins gain market share are often called “alt seasons.” During these stretches, Bitcoin dominance tends to fall as funds and interest rotate into non-BTC assets.
People watch dominance to get a quick read on market tone. A rising percentage can signal a tilt toward Bitcoin, which some treat as a safer choice in crypto, while a falling percentage can hint at growing appetite for altcoins and experimentation. It is a context tool, not a trading signal by itself.
Dominance does not measure “real value” or cash flowing into crypto. Market cap is a simple calculation based on circulating supply and price. The presence of forked or heavily premined coins can also skew the total market cap, which affects the ratio.
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