Bitcoin Dominance (Bitcoin Dominance Rate) is an indicator that reflects the percentage of Bitcoin's market capitalization compared to the total market capitalization of the entire cryptocurrency market. This indicator helps investors assess the level of influence of Bitcoin in the market and the trend of money flow between Bitcoin and altcoins (cryptocurrencies other than Bitcoin).(OSL)

📐 How to calculate Bitcoin Dominance

The formula is as follows:

Bitcoin Dominance (%) = (Market capitalization of Bitcoin / Total market capitalization of cryptocurrencies) × 100

For example: If the market capitalization of Bitcoin is $1.8 trillion and the total market capitalization of cryptocurrencies is $2.8 trillion, then Bitcoin Dominance will be:

(1.8 / 2.8) × 100 = 64.3%

📊 Significance of Bitcoin Dominance

Increasing Bitcoin Dominance: Indicates that money is flowing into Bitcoin more, usually occurring during unstable or bearish market phases when investors seek safer assets.

Decreasing Bitcoin Dominance: Indicates that money is shifting to altcoins, usually occurring during strong growth market phases when investors accept higher risks to seek larger profits.

📈 Current situation (May 2025)

As of the end of April 2025, Bitcoin Dominance has reached 64%, the highest since January 2021. This increase is mainly due to the inflow of funds from institutional investors after the U.S. Securities and Exchange Commission (SEC) approved cryptocurrency ETF funds in January 2024. (fnlondon.com)