What is Bitcoin Dominance?
Bitcoin Dominance is a measure of how much of the total market cap of crypto is comprised of Bitcoin. It can help you understand the trend of BTC and alts. See the Bitcoin dominance.
The most important thing about Bitcoin Dominance is that it can help you understand if altcoins are in a downtrend or uptrend against BTC.
- When BTC Dominance goes up, alts, on the whole, lose value against BTC.
- When BTC Dominance goes down, alts on the whole, gain value vs BTC.
Bitcoin dominance refers to the percentage of the total market capitalization that bitcoin represents.
By market capitalization (market cap), Bitcoin is the most valuable cryptocurrency in the world, commanding a significant portion of the trading volume (and attention) in the cryptocurrency markets.
The total market cap valuation of the cryptocurrency market is gotten by adding the summative market capitalizations of all existing cryptocurrencies. When that is done, we can arrive at a total market cap valuation for the entire cryptocurrency space. As a result, Bitcoin dominance is defined as the ratio of Bitcoin’s market cap to that of the rest of the cryptocurrency markets.
BTC dominance is used to describe Bitcoin’s share of the global cryptocurrency market capitalization