What Is Bitcoin Dominance and Why It Matters for Altcoins
Bitcoin dominance is one of the most important indicators in the crypto market, yet many beginners ignore it.
Understanding Bitcoin dominance can help you know when Bitcoin is leading the market and when altcoins may start performing better.
What Is Bitcoin Dominance?
Bitcoin dominance (BTC.D) shows the percentage of Bitcoin’s market capitalization compared to the total crypto market.
In simple terms:
It tells us how much of the entire crypto market value belongs to Bitcoin.
It helps us understand where money is flowing in the market.
Why Bitcoin Dominance Goes Up or Down
BTC dominance rises when investors move money from altcoins into Bitcoin (usually during uncertainty).
BTC dominance falls when investors move funds into altcoins (often during altcoin seasons).
What High Bitcoin Dominance Means
When Bitcoin dominance is high:
Bitcoin is stronger than most altcoins
Altcoins may struggle or move slowly
Investors prefer safety over risk
What Falling Bitcoin Dominance Means
When Bitcoin dominance is falling:
Money is rotating into altcoins
Altcoins may outperform Bitcoin
This can signal the start of an altcoin rally
How Traders Use Bitcoin Dominance
Many traders watch Bitcoin dominance together with:
Bitcoin price
Total crypto market cap
Altcoin charts
This helps them understand market direction, not to predict exact prices.
You can track Bitcoin dominance using the BTC.D chart on TradingView to see long-term trends and key levels.
This content is for educational purposes only and should not be considered financial advice. Always do your own research before making investment decisions.
