Understanding Bitcoin Dominance
Bitcoin (BTC) dominance measures Bitcoin's relative market share within the broader cryptocurrency sector. It represents the ratio of Bitcoin's total market capitalization to the combined market cap of all cryptocurrencies.
Key Metrics:
- Current BTC Dominance: 64.5%
- ETH Dominance: 9.2%
- Total Crypto Market Cap: $3.37 trillion
Why Bitcoin Dominance Matters
Market Sentiment Indicator:
- High dominance suggests investor preference for Bitcoin over altcoins.
- Declining dominance often signals altcoin season.
Investment Strategy:
- Traders use dominance trends to allocate portfolios between BTC and altcoins.
Historical Context:
- BTC dominance peaked at over 70% in early 2021.
- It typically declines during bull markets as altcoins gain traction.
Factors Influencing BTC Dominance
- Institutional Adoption: Bitcoin ETFs and corporate investments.
- Altcoin Innovation: New projects competing for market share.
- Macroeconomic Trends: BTC often acts as a "digital gold" hedge.
👉 Discover real-time dominance trends
FAQ Section
Q: How is Bitcoin dominance calculated?
A: (BTC Market Cap) ÷ (Total Crypto Market Cap) × 100.
Q: Does high dominance mean altcoins are undervalued?
A: Not necessarily—it reflects current market preferences rather than absolute value.
Q: What’s the lowest recorded BTC dominance?
A: Around 35% during the 2018 altcoin boom.
Strategic Takeaways
- Monitor dominance alongside the Fear & Greed Index (currently 46/100).
- Use dominance shifts to time portfolio rebalancing.
👉 Explore crypto market cycles
Data updated as of 2025. Sources: CoinMarketCap, decentralized analytics.
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**Notes**:
1. Removed ads, non-2025 dates, and Korean text.