BTC Dominance (DOM): How to read the pulse of the crypto market

What does this actually mean for your portfolio?

BTC Dominance ( or simply DOM) is the percentage that shows what portion of the total crypto market capitalization is occupied by Bitcoin. The formula is simple: BTC Market Cap ÷ ( BTC Market Cap + all altcoins) × 100%.

For example: if BTC had $900 billion and all alts together had $100 billion, then DOM = 90%.

Historically, BTC dominated at 60-70%, then fell to 50-55%, and during crashes, it spiked above 70%. This number changes depending on where the money flows - into the king of crypto or into game.fi and L2 solutions.

Four Market Scenarios - What You Need to Know

Scenario 1: BTC ↑ Alts ↑ This is the golden hour. Influx of new money, FOMO in full swing, the entire market is rising together.

Scenario 2: BTC ↑ Alts ↓ Capital from altcoins is flowing into Bitcoin — mainly before a critical drop. DOM is rising, alt-holder portfolios are whitening.

Scenario 3: BTC ↓ Altcoins ↓ The king is doing poorly — everyone in the court is doing even worse. This is a classic “the market is panicking” scenario.

Scenario 4: BTC ↔/↓ Altcoins ↑ One of the rare moments. BTC is gathering strength for the next strike, while the altcoins have to wait 1-2 years. But this is the time for the right choice of altcoins.

What to do when DOM dissolves

When BTC Dominance falls:

• Bitcoin is slowing down, but altcoins are exploding
• Money is flowing from BTC into hot altcoins that have new narratives (AI, RWA, LST)
• Even mid-tier projects can give 3-5x

However, choose altcoins with a solid foundation — a good product, low entry price, active development. This minimizes the risk of crashing along with everything else when the DOM changes trend.

Key Moments in the History of DOM

2016: BTC was below $100, there was little Ethereum — DOM was 90%+

Mid 2017: The ICO boom pushed ETH to 30%, BTC fell to 35% — this was the peak of the alt-season.

End of 2017: BTC up to 20K $ → DOM returned above 65%

January 2018: The profits of the white sharks flowed into altcoins, BTC fell below 33%

2020-2021: COVID crash to 3.8K, then explosion to 41K. DOM jumped by 74% — it was the era of the mega bull run for BTC.

2024: DOM fluctuates between 48-52%, but depends on capital flows into new sectors (RWA, Solana DeFi, L2)

Beyond the DOM — what else to look at

Only DOM is not enough. Also, keep an eye on:

• TOTAL — total crypto capitalization
• TOTAL2 — capitalization without BTC (clean altmoderna)
• USDT.D — how much money is locked in stablecoins (panic signal during the rise)

This triumvirate can predict when BTC will pull the entire market and when a true alt-season will begin.