📊 What is BTC Dominance?
BTC Dominance is the percentage of Bitcoin's market cap compared to the total market cap of all cryptocurrencies.
✅ Simple Formula:
BTC Dominance = (Market Cap Bitcoin / Total Market Cap Crypto) x 100%
Simple example:
If the total crypto market cap is $2 Trillion, and BTC is $1 Trillion
→ BTC Dominance = 50%
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🔍 Why is BTC Dominance Important?
1️⃣ Measuring Bitcoin's strength compared to other cryptos.
2️⃣ Observing the trend direction of altcoins:
• BTC Dominance rises: More money is flowing into Bitcoin. Usually, Altcoins are sluggish.
• BTC Dominance decreases: Money starts to flow to Altcoins (potential Altseason).
🎯 Example of Common Patterns:
1️⃣ Bitcoin Pump → BTC Dominance rises
2️⃣ BTC Sideways → Altcoins start to rise, Dominance decreases
3️⃣ Market Crash → BTC Dominance rises again (people seek safety)
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🛑 Common Beginner Mistakes:
❌ BTC goes up, do Altcoins automatically follow? Not necessarily.
Check BTC Dominance first, because the direction of money dominance is important for understanding Altcoin momentum.
Currently, BTC Dominance is around 61–61.7% — latest indication:
• CoinCodex: 60.16% (-0.6% in 24 hours)
• TradingView: 61.19%
• Newhedge: 60.8%
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🔍 What does it mean?
1. Dominance ~61%
Bitcoin dominates about 61% of the total crypto market cap, the remaining 39% is for altcoins.
2. Dominance Decreased from 65%
At the beginning of July, it reached 65.5%, now it has dropped to around 61%. This indicates a shift in ownership from Bitcoin to altcoins:
• Ethereum and XRP have shown significant increases in recent weeks.
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🧭 Interpretation & Impact
• Altseason is starting to crawl up. A decrease in dominance signals that investors are beginning to shift funds to altcoins.
• However, the 'Altcoin Season' index is still in the neutral range (~43-49) — not yet a sign of a significant altseason occurring.
• BTC Dominance is in a downward trend, but has not yet reached the classic altseason level (~50%). It could continue to drop or correct back to ~65%.
