“Bitcoin Dominance” represents the proportion of Bitcoin’s market capitalization in the total market capitalization of the entire cryptocurrency market. The formula is:
Bitcoin Dominance = BTC Market Cap ÷ Total Market Crypto Market Cap
Its importance lies in:
When the proportion of BTC significantly increases, it usually indicates a conservative market; when the proportion decreases, it may mean that alts have room for performance.
According to the latest market data, Bitcoin Dominance is currently around 58%-59%, still near a phase high.
The BTC market share hovering at this position indicates:
When the dominance rate remains high for several consecutive weeks, it means that BTC’s dominance in the current cycle has not been shaken.
The increase in BTC’s proportion is often a comprehensive reflection of the following market signals:
When global economic uncertainty rises, funds tend to flow into the “relatively stable” Bitcoin rather than higher-risk small-cap coins.
Investors favor assets with a more certain upward trend. Even though alts have a higher potential for gains, risk appetite has not yet recovered.
Before each major explosion of alts, it usually goes through: BTC strong → Dominance peaks → Funds begin to flow out of BTC → Alts rotate and rise. Currently, the market is in the first stage: BTC still holds power.
This is the question most investors are concerned about. The answer is: opportunities are brewing, but the timing is not yet right.
The reasons are as follows:
Bitcoin Dominance cannot rise infinitely. History shows that the dominance typically faces resistance around 60%, followed by a pullback.
Once the dominance rate declines - it is usually a precursor to the launch of alts.
Although the dominance rate is high, some high-quality alts have begun to emerge:
This is a typical characteristic of the “dormant period.”
In other words - if BTC remains strong and stabilizes at a high level, the probability of the next upward cycle being led by alts will gradually increase.
Therefore, the current market is more like it is building momentum for the future trends of alts, rather than completely suppressing them.
To leverage the changes in Bitcoin Dominance to guide investments, you can start with the following points:
In the high dominance phase, it is more stable to continue with BTC as the core position.
Before the dominance rate is about to shift, it’s best to position quality alts in advance for the highest win rate.
Especially:
These sectors are usually the first hot spots to start after the dominance rate declines.
Altcoin market trends often arrive quickly, so it’s important to pay attention to capital flows, on-chain data, and dominance break situations in advance.
The real-time trend of Bitcoin Dominance live is one of the core indicators to observe the structure of the entire crypto market. Currently, the BTC market share remains high, indicating that the market is biased towards stability and funds are concentrated in Bitcoin. However, this does not mean that alts have no opportunity — on the contrary, history tells us: the higher the dominance rate, the stronger the explosion of alts after a reversal.
The current market is in a golden transition period of “BTC strength and alts accumulating momentum.” Smart investors will find direction in the changes of dominance, rather than blindly chasing the ups and downs.
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