$BTC

Why It's Important to Track Bitcoin Dominance

Understanding Bitcoin dominance is critical for navigating the dynamic landscape of the cryptocurrency market. As the leading cryptocurrency, Bitcoin often sets the tone for market sentiment and trends. Tracking Bitcoin dominance provides valuable insights into market dynamics, helping investors identify potential opportunities and assess the overall health of the market.

What is Bitcoin Dominance?

Bitcoin dominance refers to the percentage of Bitcoin's market capitalization relative to the total market capitalization of the cryptocurrency market. It represents the market share held by Bitcoin.

What factors can influence changes in Bitcoin Dominance?

There are two ways how Bitcoin Dominance can change:

Bitcoin’s Market Cap grows faster than the rest of the market (including cases when other altcoins decline). Thus, BTC Dominance will increase.

Bitcoin’s Market Cap grows slower than the rest of the market (or its market cap declines when the rest of the market grows). This way, BTC Dominance will decline.