Bitcoin dominance (BTC.D) is the percentage of total cryptocurrency market capitalisation represented by Bitcoin. If the entire crypto market is worth $3 trillion and Bitcoin is worth $1.8 trillion, Bitcoin dominance is 60%. It is one of the most widely tracked macro indicators in crypto — used to gauge the relative strength of Bitcoin versus altcoins and to time capital rotation between the two. Bitcoin dominance typically fluctuates between 40% and 65% across market cycles, and its direction often signals where capital is flowing.
How to use Bitcoin dominance as a trading signal: Rising BTC.D — Bitcoin is gaining relative to altcoins; capital flowing into BTC (risk-off within crypto or new institutional buyers entering via BTC); altcoins typically underperform; a rising dominance trend often signals the early-to-mid bull phase when BTC leads; Falling BTC.D — Bitcoin is losing relative share; capital rotating into altcoins; typically signals altseason is underway or beginning; BTC.D peaks — historically coincide with altseason starting; BTC.D troughs — often coincide with altcoin peaks and potential market tops. The ETH/BTC ratio is a related indicator — when ETH begins outperforming BTC, it typically precedes broader altcoin strength. Bitcoin dominance is displayed live on TradingView (chart: BTC.D) and CoinMarketCap and is a key variable to monitor daily as part of a complete market overview.
Example: Bitcoin dominance falls from 58% to 48% over 8 weeks while BTC price holds steady. A cycle-aware trader interprets this as capital rotating into altcoins, increases altcoin exposure, and captures the subsequent altseason as smaller caps surge 3–10x.
Learn more: CoinMarketCap — Bitcoin Dominance Chart
