Bitcoin dominance (BTC.D) measures Bitcoin’s share of the total crypto market cap. When BTC.D is high or rising, investors favor Bitcoin over altcoins, often due to market uncertainty or risk aversion. Conversely, a falling BTC dominance suggests capital flowing into altcoins, sparking an “altcoin season.” Alt season begins when BTC.D drops significantly, and altcoins outperform Bitcoin in price and percentage gains. This shift usually happens after Bitcoin rallies and stabilizes, freeing capital for higher-risk assets. Traders watch BTC.D charts for signals, as a break below key dominance levels often signals the start of broader altcoin momentum and potential explosive gains.
