What is Bitcoin Dominance

What is Bitcoin Dominance

Bitcoin dominance is estimated as the ratio of bitcoin's market capitalization to the rest of the digital currency market.

Some Crypto Investors Use Bitcoin Dominance as a Playbook

While there are currently many altcoins out there, bitcoin, the first cryptocurrency, has remained the biggest computerized resource.

Some have come to involve the dominance of BTC as an aid to their trading conduct.

Specifically, BTC dominance is accepted to provide insight into which direction the market will take.

You can calculate Bitcoin dominance with the following formula:

BTC Dominance = BTC Market Capitalization / Total Market Capitalization of All Cryptocurrencies

What can influence Bitcoin Dominance?

Changes in market trends

Bull Market or Bear Market

Buying fiat currency through stablecoins

Emergence of new cryptocurrencies

BTC dominance is a tool to help reveal information about how market cycles are evolving.

Please note that BTC dominance does not guarantee the performance of bitcoin or any other cryptocurrency.

But it works as a manual to help investors organize their trading approach.