$BTC Bitcoin Dominance refers to the percentage of the total market capitalization of cryptocurrencies that is composed of Bitcoin. It is a metric used to measure the strength of Bitcoin in relation to the rest of the crypto market.
📊 Formula:
\text{Bitcoin Dominance} = \left( \frac{\text{Market Capitalization of Bitcoin}}{\text{Total Market Capitalization of All Cryptocurrencies}} \right) \times 100
✅ Why Bitcoin Dominance Matters:
Market Sentiment Indicator:
High dominance (\u003e50%): Investors prefer Bitcoin over altcoins, often during market uncertainty.
Low dominance (
Altseason Prediction:
When BTC dominance falls while the total market capitalization increases, it is often an early signal of "Altseason," where altcoins outperform BTC.
Portfolio Strategy:
