$BTC Bitcoin Dominance refers to the percentage of the total cryptocurrency market capitalization that is made up of Bitcoin. It is a metric used to gauge Bitcoin's strength relative to the rest of the crypto market.
📊 Formula:
\text{Bitcoin Dominance} = \left( \frac{\text{Market Cap of Bitcoin}}{\text{Total Market Cap of All Cryptocurrencies}} \right) \times 100
✅ Why Bitcoin Dominance Matters:
Market Sentiment Indicator:
High dominance (>50%): Investors favor Bitcoin over altcoins, often during market uncertainty.
Low dominance (<40%): Interest shifts toward altcoins (Ethereum, Solana, etc.), often during bullish or speculative phases.
Altseason Predictor:
When BTC dominance falls while total market cap rises, it's often an early signal of “Altseason”, where altcoins outperform BTC.
Portfolio Strategy:
Traders use BTC dominance in technical analysis to shift allocations between Bitcoin and altcoins.
🔁 Example:
Bitcoin market cap: $900 billion
Total crypto market cap: $1.8 trillion
Dominance:
