What Is Bitcoin Dominance (BTC.D)?

Bitcoin Dominance measures Bitcoin’s share of the total cryptocurrency market cap.
It tells you how much of the total crypto market value belongs to Bitcoin versus all other altcoins combined.

Bitcoin Dominance Formula:

BTC Dominance % = (Bitcoin Market Cap ÷ Total Crypto Market Cap) × 100

Example:
If BTC = $900B and Total Crypto = $1.8T →
(900 ÷ 1800) × 100 = 50% Dominance

📊 What It Tells You:

  • High BTC.D (>55%) → Market prefers Bitcoin (often during uncertainty or bear markets).

  • Low BTC.D (<45%) → Money is flowing into altcoins (typical during altseason rallies).

🔄 Why Traders Watch It:

  1. Sentiment Indicator
    Rising dominance = risk-off mood.
    Falling dominance = risk-on (altcoin buying).

  2. Altcoin Timing Clue
    Altcoins often rally when BTC.D starts declining after a peak.

  3. Market Cycle Insight
    Bull markets usually start with Bitcoin leading, then dominance falls as alts catch up.

🧠 Simple Rule:

  • BTC.D up → Focus on Bitcoin.

  • BTC.D down → Watch altcoin opportunities.

It’s like a market mood ring — showing whether investors are playing it safe (BTC) or chasing higher risk/reward (alts).

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