Bitcoin dominance refers to the percentage of the total cryptocurrency market capitalization that is held in Bitcoin (BTC). A high BTC dominance, such as over 50%, indicates that Bitcoin holds a stronger position compared to altcoins, reflecting investor confidence and a preference for the original cryptocurrency. When BTC dominance rises, it often suggests a shift away from riskier altcoins into Bitcoin, especially during market uncertainty. Conversely, a decline in dominance can indicate growing interest in alternative coins. Traders and analysts use BTC dominance as a key metric to gauge market sentiment, trends, and potential shifts between Bitcoin and altcoin performance.
