In the crypto space, there are many metrics that help traders and investors understand the current market situation. However, one of the most important and underrated metrics is Bitcoin dominance (BTC Dominance). Many do not realize how critical it is to monitor this indicator, as it provides a clear signal of when to enter altcoins.
What is BTC dominance and why is it important?
Bitcoin dominance is the percentage share of its market capitalization relative to the entire crypto market. In other words, if this indicator is high, it means that a large portion of money in crypto is concentrated in BTC rather than altcoins. If dominance decreases, it means money is starting to flow into altcoins, creating positive dynamics for them.
The influence of dominance on the market:
1. An increase in BTC dominance (above 61-62%) is usually a bearish signal for altcoins. In such a situation, capital exits risky assets (altcoins) and flows into BTC, stablecoins, or completely leaves the market.
2. A decrease in BTC dominance (below 60%) is a sign of the beginning of the alt season. Money begins to flow into quality altcoins, provoking their growth.
3. Critical levels (below 59-58%) – in such a scenario, there is a powerful movement in altcoins, including projects like $SEI , $ARB , $SUI , $SOL, which are technologically promising and have high growth potential.
Current situation and what to do?
According to recent data, Bitcoin dominance is 60.61%. This means we are in a transitional phase where Bitcoin is still dominating, but a downward trend has emerged. The first signs of capital distribution into altcoins are already noticeable.
✅ Optimal strategy:
• If BTC dominance breaks down below 60% and moves towards 59-58%, this is a good time to accumulate promising altcoins.
• If dominance rises above 61% again, it is wise to be cautious, as the market may continue to lean towards BTC or stablecoins.
🎯 Which altcoins to consider?
When BTC dominance decreases, it is wise to bet on quality Layer-1 and DeFi projects:
• SEI – a promising L1 on the Cosmos SDK, optimized for trading.
• ARB (Arbitrum) – one of the top L2 solutions for Ethereum with high liquidity.
• APTOS – a technological blockchain competing with Solana.
• SOL (Solana) – one of the most sought-after blockchains with a huge ecosystem.
📉 Conclusion:
A drop in BTC dominance is a direct signal for the growth of altcoins. Right now, we are in a moment where the BTC dominance trend may turn downwards. In this case, it will be an excellent time to enter strong altcoins. We are watching the 59% mark – if we break down, we can expect a new growth cycle in the altcoin market.
