Domination Bitcoin
Bitcoin's share of the total market capitalization of the entire cryptocurrency market. An increase in dominance indicates an influx of capital into BTC. A decrease indicates a shift to altcoins.
BTC/ETH/Alts Dominance Chart
What does Bitcoin dominance mean and how can it be used?
BTC Dominance — is the share of Bitcoin's market capitalization in the total capitalization of all cryptocurrencies. The formula is simple: BTC market capitalization ÷ total market capitalization × 100%. There are currently thousands of tokens on the market, and this figure changes every second along with prices.
In 2017, Bitcoin's dominance dropped to 37% at the peak of the ICO frenzy, with ETH, Ripple, and hundreds of new tokens attracting massive investment. In 2019–2020, its dominance recovered to 70%, when most ICO projects closed and capital returned to Bitcoin. This cycle illustrates a basic mechanic: alt-season often begins after a prolonged period of rising BTC dominance.
Derivatives traders monitor dominance as a leading indicator of rotation. A rapid decline in dominance during a rising market = money flowing into altcoins (increased risk). An increase in dominance in a falling market = a flight to the safe haven of crypto. An increase in dominance in a rising market = the potential start of a new BTC cycle before the altcoin rotation.
How to read BTC dominance changes
Dominance is growing
Capital is flowing into Bitcoin or out of altcoins. This indicates a flight to quality amid uncertainty or the start of a new BTC rally after a bear market.
Dominance is falling
Capital is being diverted into altcoins. This isn't always alt season—sometimes it's due to the rise of a major altcoin (ETH) or the launch of a new trend (DeFi, NFTs, L2).
BTC is growing, and so is its dominance.
A classic start to a bullish cycle. New capital flows in through Bitcoin, the most liquid and easily understood asset. Alts typically lag or even decline against BTC during this phase.
BTC is rising, but its dominance is falling.
The late bull run phase—alts begin to outperform Bitcoin. Historically, this is the period of maximum euphoria and, simultaneously, maximum risk for leveraged positions.