Coreen Vandenboom q0Vy

What Is Bitcoin Dominance and Why It Matters for Altcoins

Bitcoin dominance is one of the most important indicators in the crypto market, yet many beginners ignore it.
Understanding Bitcoin dominance can help you know when Bitcoin is leading the market and when altcoins may start performing better.

What Is Bitcoin Dominance?

Bitcoin dominance (BTC.D) shows the percentage of Bitcoin’s market capitalization compared to the total crypto market.

In simple terms:

It tells us how much of the entire crypto market value belongs to Bitcoin.

It helps us understand where money is flowing in the market.

Why Bitcoin Dominance Goes Up or Down

BTC dominance rises when investors move money from altcoins into Bitcoin (usually during uncertainty).

BTC dominance falls when investors move funds into altcoins (often during altcoin seasons).

What High Bitcoin Dominance Means

When Bitcoin dominance is high:

Bitcoin is stronger than most altcoins

Altcoins may struggle or move slowly

Investors prefer safety over risk

What Falling Bitcoin Dominance Means

When Bitcoin dominance is falling:

Money is rotating into altcoins

Altcoins may outperform Bitcoin

This can signal the start of an altcoin rally

How Traders Use Bitcoin Dominance

Many traders watch Bitcoin dominance together with:

Bitcoin price

Total crypto market cap

Altcoin charts

This helps them understand market direction, not to predict exact prices.

You can track Bitcoin dominance using the BTC.D chart on TradingView to see long-term trends and key levels.

This content is for educational purposes only and should not be considered financial advice. Always do your own research before making investment decisions.

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