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What is Bitcoin Dominance and Why Does It Matter?
Have you seen Bitcoin go up 15% overnight while other cryptos barely move? That’s no coincidence. That’s BTC dominance doing its thing.
The simple concept
Bitcoin dominance measures what percentage of the total crypto market is controlled by BTC. It’s like asking, “How much pizza did Bitcoin eat at the crypto party?”
Formula: (BTC Market Cap ÷ Total Crypto Market Cap) × 100
Real example right now:
BTC controls more than half the pie.
What does each movement mean?
Dominance rising = Investors prefer BTC (safe mode)
Dominance falling = Capital flows to altcoins (risk mode)
The trader’s trick
The key combo:
Important psychological levels:
Historical data doesn’t lie
4 scenarios = 4 strategies
What NOBODY tells you: the traps
✋ Don’t use dominance alone. Combine it with:
⚠️ Stablecoins distort the numbers. USDT, USDC, BUSD artificially inflate the total market cap → BTC seems less dominant than it actually is.
Where to check dominance
CoinMarketCap, CoinGecko, TradingView → check in real time and chart it yourself.
TL;DR: Dominance is your crypto market GPS. When it rises, investors play it safe. When it drops, the altcoin party begins. Use it as context, not as a magic prediction.