What is BTC Dominance (BTC.D)? A Simple Guide to Bitcoin's Market Control

2025-11-06 10:01:47

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Why Should You Care About BTC.D?

BTC Dominance is basically Bitcoin’s “market share” of the entire crypto market. Think of it like this: if the total crypto market is worth $2 trillion and Bitcoin alone is worth $900 billion, then Bitcoin’s dominance is 45%.

The simple formula: BTC.D = Bitcoin’s Market Cap / Total Crypto Market Cap

What Does BTC.D Actually Tell You?

This index reveals where investment money is flowing:

BTC.D Rising → Money flowing INTO Bitcoin → Altcoins typically get dumped
BTC.D Falling → Money flowing OUT of Bitcoin → Altcoins get pumped (or stable coins if people are taking profits)

It’s basically a heatmap of investor sentiment. When BTC dominance is high, Bitcoin is the main attraction. When it’s low, altseason is usually happening.

A Quick History Lesson

Early days: BTC.D was around 95%+ because there were barely any other cryptos
2017 ICO boom: BTC.D crashed to 35% as people FOMO’d into altcoins
2018 crash: BTC.D bounced back to 70% when most altcoin projects failed
2021: BTC.D kept declining as capital rotated into alt L1 chains and DeFi tokens

How to Use This Information

If you’re an altcoin investor, BTC.D is your best friend. When it peaks and starts dropping, that’s often when altseason picks up. But here’s the catch: it’s not a crystal ball. Always combine it with other indicators and risk management.

For Bitcoin hodlers? Honestly, BTC.D doesn’t tell you much about Bitcoin’s price direction itself.

Where to Track BTC.D

Check TradingView, CoinMarketCap, Coin360, or CoinGecko—they all update BTC.D in real-time.

Bottom line: BTC Dominance is one of the best tools to understand capital flows in crypto. Master this, and you’ll understand altseason cycles way better.

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