Bitcoin Dominance
In short
Bitcoin's market cap as a percentage of total crypto market cap
Bitcoin dominance shows how much of all crypto money is in Bitcoin. High dominance (>60%) means investors prefer Bitcoin's safety. Falling dominance during a bull market often signals altcoin season — smaller coins outperforming Bitcoin.
BTC dominance = Bitcoin's market cap ÷ total crypto market cap. Historically, dominance falls during bull markets as capital rotates to altcoins. Rising dominance during bear markets shows 'flight to quality' within crypto. Key signal for portfolio rotation strategies.
Formula
BTC Dominance = BTC Market Cap ÷ Total Crypto Market Cap × 100Thresholds
- < 40
- Altcoin season — alts outperforming
- 40-50
- Balanced market
- 50-60
- Bitcoin-dominated
- > 60
- Strong BTC dominance — bear market signal
Related concepts
- Crypto Market Cap — Crypto market cap = price × number of coins in circulation. Bitcoin at $60,000 with 19.5M coins = ~$1.17T market cap. A rising total crypto market cap means money is flowing into the space.
- Market Cap Rank — Market cap rank orders all cryptocurrencies by size. Bitcoin is #1, Ethereum #2. Top 10 coins have higher liquidity and lower risk. Smaller ranks (lower down the list) mean higher volatility and risk but potentially higher reward.
- 24h Trading Volume — 24h volume shows how much of a coin changed hands today (in dollars). High volume on a price move = conviction. Low volume on a price move = potentially fake move. Volume is the lie detector of price action.