BTC dominance: what it is and how to use it in trading

airdrop_huntress · 2025-11-17T05:18:30+00:00

The BTC dominance (BTC.D) indicates Bitcoin's share of the total crypto market. It is crucial for traders to monitor BTC.D trends to determine market sentiment, guiding their investments towards Bitcoin for safety or altcoins for potential growth during "altcoin seasons."

airdrop_huntress

2025-11-17 05:18:30

Abstract generation in progress

In short

BTC dominance (BTC.D) is an indicator that tells you what share of the entire crypto market is occupied by Bitcoin. If BTC.D = 50%, then half of all money in crypto is invested in BTC, and half is in altcoins.

The formula is simple:

BTC.D = (BTC Market Cap / Total Crypto Market Cap) × 100%

Example: BTC capitalization 800 billion USD, the entire crypto market 2000 billion USD → BTC.D = 40%

Why this is important for a trader

When BTC.D rises ↑

Money flows into Bitcoin
People are looking for safety, the market is getting nervous.
Altcoins are declining relative to BTC
Strategy: hold BTC or stablecoins

When BTC.D falls ↓

Money from BTC goes to altcoins
The “altcoin season” has begun - it's time for altcoins to soar.
Strategy: switch to altcoins to catch what is rising

Practical Tips

Follow the trend: BTC.D shows where the money is flowing — into safety (BTC) or into risk (alts)
Combine with other indicators: Also look at the total market capitalization (TOTAL) and technique.
Where to get data: TradingView, CoinMarketCap, CoinGecko
Remember: This is not an absolute law, but rather a compass of market sentiments.

In short: if you want to know when the altcoin season arrives, keep an eye on BTC.D.

BTC2,04%

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