Domination Bitcoin
Percentage share Bitcoin in the total market capitalization of the entire cryptocurrency market. Growing dominance means an influx of capital into BTCThe fall is a shift to altcoins.
January 2018, peak ICO-boom: hundreds of new tokens pulled capital out of BTCLevels below 40% have historically coincided with alt-season highs.
2019–2020: Most ICO- projects were reset, and capital returned to BitcoinA prolonged increase in dominance is a typical phase before the start of a new cycle.
Above this mark, more than half of the market capitalization sits in BTCTraders interpret the crossing of the level as a change in the regime.Bitcoin against altos."
Alt-season index TRdesk compares the 90-day returns of the top 50 coins with Bitcoin According to our own stock exchange data, this is a practical answer to the same question as dominance.
What does dominance mean? Bitcoin and how to use it?
BTC Dominance — is the share of market capitalization Bitcoin in the total capitalization of all cryptocurrencies. The formula is simple: capitalization BTC ÷ Total market capitalization x 100%. There are currently thousands of tokens on the market, and this figure fluctuates every second along with prices.
Dominance in 2017 Bitcoin dropped to 37% at its peak ICO-madness - ETH, Ripple and hundreds of new tokens attracted huge investments. In 2019–2020, the dominance recovered to 70%, when the majority ICO- projects were reset and capital returned to BitcoinThis cycle illustrates a basic mechanic: alt-season often begins after a long period of increasing dominance. BTC.
Derivatives traders monitor dominance as a leading indicator of rotation. A rapid decline in dominance during a rising market = money flowing into alts (increased risk). Increasing dominance in a falling market = a flight to the safe haven of crypto. Increasing dominance in a rising market = the potential start of a new one. BTC-cycle before alt-rotation.
How to read dominance changes BTC
Dominance is growing
Capital flows into Bitcoin or leaks from altcoins. A sign of a flight to quality in conditions of uncertainty or the beginning of a new BTC- rally after the bear market.
Dominance is falling
Capital is being rotated into altcoins. This isn't always alt season—sometimes it's due to the rise of a major altcoin (ETH) or launching a new trend (DeFi, NFT, L2).
BTC growing, dominance too
A classic start to a bullish cycle. New capital comes in through Bitcoin — the most liquid and understandable asset. Alts in this phase usually lag or even fall against BTC.
BTC grows, dominance falls
Late phase bull run - alts start to overtake BitcoinHistorically, this is a period of maximum euphoria and, at the same time, maximum risk for leveraged positions.