Bitcoin Dominance

The relationship between Bitcoin dominance and altcoins is often INVERSE.

Bitcoin dominance refers to the percentage of the total cryptocurrency market capitalization that is held by Bitcoin (BTC).

When Bitcoin dominance rises, it suggests that altcoins are losing market share, either due to declining prices or reduced interest from investors. Conversely, a decrease in Bitcoin dominance is usually a sign of growing altcoin activity, as capital flows into smaller cryptocurrencies. This dynamic often leads to «altseason» a phase where altcoins outperform Bitcoin in terms of price growth. Monitoring Bitcoin dominance helps traders and investors understand shifts in market sentiment and identify potential opportunities in the altcoin market.