#BTCdominance

Bitcoin dominance (often abbreviated as BTC.D) is a metric that measures Bitcoin's market capitalization as a percentage of the total cryptocurrency market capitalization. It is calculated using the formula:

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

For example, if Bitcoin's market cap is $1.8 trillion and the total crypto market cap is $2.8 trillion, Bitcoin dominance would be approximately 64.3% .

Why Bitcoin Dominance Matters

Bitcoin dominance serves as an indicator of market sentiment and investor behavior:

CoinGecko

High BTC Dominance: Suggests investors are favoring Bitcoin over altcoins, often during periods of market uncertainty or when Bitcoin is perceived as a safer asset.

Low BTC Dominance: Indicates increased interest in altcoins, which may occur during "altcoin seasons" when alternative cryptocurrencies outperform Bitcoin .

CoinGecko

Monitoring BTC dominance can help investors make informed decisions about portfolio allocation between Bitcoin and other cryptocurrencies.

For real-time tracking of Bitcoin dominance, you can refer to platforms like CoinMarketCap or TradingView.