Bitcoin Dominance: What It Tells You About the Market
Bitcoin dominance is the percentage of the total crypto market capitalisation that belongs to Bitcoin. You can see it at the top of the Markets page next to the global market cap and 24-hour volume.
How it is calculated
Bitcoin market cap ÷ total crypto market cap × 100. If Bitcoin is worth 600 billion and the whole market is worth 1 trillion, dominance is 60%.
How people read it
- Rising dominance often means money is moving into Bitcoin, sometimes as a safer choice during uncertainty.
- Falling dominance can mean other coins are growing faster, which people often call an alt season.
Why it is not simple
Stablecoins count in the total. When people sell coins for stablecoins, total market cap changes and so does dominance, even if Bitcoin's price has not moved. A move in dominance can come from several causes at once.
Using it sensibly
- Treat it as context, not a trading signal.
- Compare it with price and volume.
- Look at how it has changed over weeks and months, not hours.
The takeaway
Dominance is a handy snapshot of where the market's weight sits. It tells you what has happened, not what will happen next.
This article is for information only and is not financial advice.
