Bitcoin dominance shows what percentage of the total crypto market is held by Bitcoin. It helps gauge investor sentiment toward Bitcoin versus altcoins.
Bitcoin is a decentralized digital currency that pioneered the cryptocurrency space. When we talk about Bitcoin dominance, we’re referring to the percentage of the entire crypto market’s total value that is represented by Bitcoin alone. In plain terms, it tells you how much of the market’s money is tied up in Bitcoin versus every other coin, token, or stablecoin.
The metric first appeared on CoinMarketCap, a leading price‑tracking site, and has since become a staple on platforms like TradingView and Bitbo.
The formula is straightforward:
Bitcoin Dominance = (Bitcoin Market Cap ÷ Total Crypto Market Cap) × 100
Where:
Because market caps are derived from price × circulating supply, any price swing in a major coin instantly reshapes the dominance figure.
Total Crypto Market Cap is the aggregate value of every token tracked by a data provider, measured in US dollars. It offers a bird’s‑eye view of the entire digital asset ecosystem, from Bitcoin to the tiniest meme coin.
Not all providers count the same assets. Some, like Bitbo, exclude stablecoins because they argue stablecoins are simply digital cash equivalents of fiat currency, not true crypto assets. Others, such as CoinMarketCap, include stablecoins to portray a fuller picture of on‑chain liquidity.
Stablecoins hold a massive portion of total market value-often 20‑30% of the overall cap. If you count them, Bitcoin’s share shrinks; if you exclude them, Bitcoin looks more dominant. The difference can be several percentage points, enough to change the narrative for traders.
For example, on a day when Bitcoin’s price is flat but a new stablecoin pumps $10billion into the market, dominance drops sharply on platforms that include stablecoins, while platforms that exclude them show little change.
Dominance is a proxy for market sentiment:
These trends are not hard rules, but they help spot capital rotation cycles. Historically, dominance spikes during market downturns and retreats during bull runs.
Professional traders employ a few common tactics:
These methods help avoid the common mistake of chasing a rally that quickly fizzles out when the market pivots back to Bitcoin.
Since Bitcoin’s launch in 2009, its share of the market has swung dramatically. Early years saw dominance above 90% because few altcoins existed. The 2017 ICO boom pushed dominance down to the low 30s as capital flooded into Ethereum, Ripple, and countless token sales. After the 2020‑2021 bull run, Bitcoin reclaimed a multi‑year high, crossing 60% again-reflecting a renewed preference for the “digital gold” narrative.
These shifts align with macro events: regulatory news, institutional adoption, and breakthrough tech releases (e.g., Ethereum 2.0). Understanding the timeline helps investors anticipate future waves.
| Platform | Includes Stablecoins? | Data Refresh Rate | Typical Dominance Range (2023‑2025) |
|---|---|---|---|
| CoinMarketCap | Yes | Every minute | 45%‑62% |
| Bitbo | No | Every 30seconds | 53%‑66% |
| TradingView (stablecoin‑inclusive) | Yes | Real‑time (5seconds) | 46%‑61% |
| TradingView (stablecoin‑exclusive) | No | Real‑time (5seconds) | 54%‑68% |
When you compare numbers, keep the stablecoin methodology in mind. A 5‑point difference can be the gap between a bullish versus a bearish reading.
A 70% dominance indicates that roughly seven‑tenths of the market’s total value is locked in Bitcoin. Altcoins are collectively holding only 30%, which often translates to weaker price action and lower trading volumes for most non‑Bitcoin assets. Investors typically view this as a sign of risk‑off sentiment.
Stablecoins are pegged to fiat currencies and rarely change in value. Including them inflates the total market cap without reflecting true crypto‑asset risk or growth. Excluding them gives a clearer picture of how much capital is truly allocated to decentralized, speculative assets.
Dominance is a strong indicator of capital flow but not a crystal ball. Historically, a rising dominance precedes market bottoms, while a falling dominance often coincides with bull‑run momentum. Use it alongside other metrics-like on‑chain activity and macro data-to improve cycle forecasts.
Because it’s a ratio of two moving totals, dominance can swing several points in a single day during high‑volatility periods. However, meaningful trend shifts usually unfold over a week or more.
No. Dominance is a valuable signal, but a robust portfolio also considers risk tolerance, investment horizon, and diversification across sectors (DeFi, NFTs, infrastructure). Use dominance as one input among many.
If you’re just starting, pick a platform-CoinMarketCap for a stablecoin‑inclusive view or Bitbo for a cleaner picture-then monitor the dominance line for a week. Note how Bitcoin’s price moves relative to the overall market. After you feel comfortable, layer in additional tools like on‑chain metrics or moving averages to refine your entry and exit points.
Remember, no single metric tells the whole story. Combining Bitcoin dominance with broader market analysis will give you a sturdier footing in the ever‑shifting crypto landscape.
Parker Dixon
August 29, 2025 AT 15:23Bitcoin dominance is a handy snapshot, especially when you’re trying to gauge market mood 😊.
celester Johnson
August 29, 2025 AT 15:28The market is a mirror of collective belief, and dominance is its reflection. When the ratio tilts toward Bitcoin, risk‑off sentiment usually follows, and vice versa.
Prince Chaudhary
August 29, 2025 AT 15:33I appreciate the breakdown of stablecoin inclusion; it really clarifies why numbers differ across sites. It’s easy to get lost without that nuance.
John Kinh
August 29, 2025 AT 15:38Looks like another buzzword to me.
Nathan Blades
August 29, 2025 AT 15:43Indeed, the metaphor of a mirror captures the ebb and flow of investor psychology. Yet we must remember that dominance is a ratio, not an absolute predictor. A sudden drop could stem from a massive altcoin rally or simply a stablecoin influx. Watching the trend over several days smooths out the noise. In my experience, pairing it with on‑chain data yields a richer picture.
Somesh Nikam
August 29, 2025 AT 15:48Understanding Bitcoin dominance starts with a simple formula, but its implications run deep.
First, the numerator-Bitcoin’s market cap-represents the collective valuation of the original cryptocurrency.
The denominator-total crypto market cap-aggregates every token tracked by the chosen data provider.
Because market caps are price times circulating supply, any price movement instantly reshapes the ratio.
When Bitcoin’s price surges while altcoins lag, the dominance number climbs, signaling a risk‑averse environment.
Conversely, a rapid expansion in DeFi or meme tokens can depress the figure, hinting at speculative appetite.
Stablecoins add another layer; including them inflates the denominator and therefore can pull the dominance down.
Excluding stablecoins gives a cleaner view of capital truly at risk in volatile assets.
Traders often watch for a sustained swing over three to five days before acting on the signal.
A rising dominance during a market dip usually precedes a bottom, as investors flock to Bitcoin’s perceived safety.
A falling dominance in a bullish phase can mark the beginning of an altcoin rally, offering high‑beta opportunities.
However, it’s crucial to corroborate the trend with volume data and on‑chain metrics to avoid false signals.
Diversifying your portfolio based on these insights can improve risk‑adjusted returns.
Remember to stick with one data source for consistency, as methodology differences can skew comparisons.
Ultimately, dominance is a tool, not a prophecy; blend it with other analysis for the best outcomes.
MARLIN RIVERA
August 29, 2025 AT 15:53The community treats dominance like a crystal ball, but it’s just math-overhyped and often misinterpreted.
Debby Haime
August 29, 2025 AT 15:58It’s easy to dismiss, but many legit traders use it as a quick sanity check 🚀. Ignoring it entirely can leave you blind to macro shifts.
emmanuel omari
August 29, 2025 AT 16:03Anyone who only looks at Western exchanges misses the real action happening in emerging markets, where Bitcoin’s share is even higher.
Andy Cox
August 29, 2025 AT 16:08yeah i get it the numbers change all the time its just a piece of data not a destiny
Courtney Winq-Microblading
August 29, 2025 AT 16:13The dance between Bitcoin and its siblings is a symphony of collective sentiment, each note resonating with hope or fear. When the melody leans toward Bitcoin, the crowd whispers “safety”; when it drifts to altcoins, the chant becomes “adventure”. Listening to that tune can guide the savvy wanderer.
katie littlewood
August 29, 2025 AT 16:18What a vivid portrayal! The market indeed performs like an orchestra, each instrument-be it Ethereum, Solana, or a humble meme token-adding its timbre to the overall harmony. When the conductor lifts the baton toward Bitcoin, the louder brass sections dominate, drowning out the delicate strings of newer projects. Yet those strings can surge when the audience craves novelty, creating crescendos that propel altcoins skyward. Understanding these dynamics requires not just a glance at charts but an ear for the underlying rhythm. A seasoned trader learns to feel when the tempo shifts, adjusting their positions before the next movement begins. So, while the dominance ratio is the sheet music, the true performance lives in the live improvisation of the market participants.
Jenae Lawler
August 29, 2025 AT 16:23While many extol the virtues of a high dominance reading, I contend that such reliance is misguided and often detrimental to diversified strategies.
Chad Fraser
August 29, 2025 AT 16:28Hey folks, keep an eye on those dominance swings-they’re like the market’s heartbeat! If it drops, it might be time to scout for the next big altcoin.
Jayne McCann
August 29, 2025 AT 16:33Dominance numbers are just noise, trust your gut.
Richard Herman
August 29, 2025 AT 16:38True, the heartbeat analogy works, but pairing it with volume trends keeps the picture clearer.
Jan B.
August 29, 2025 AT 16:43Use a single source for consistency; avoid mixing methodologies.
Stefano Benny
August 29, 2025 AT 16:48From a technical analysis standpoint, a decline in BTC dominance often correlates with a bullish MACD crossover on high‑beta altcoins, suggesting a momentum shift.
Bobby Ferew
August 29, 2025 AT 16:53Reading the dominance chart feels like watching a soap opera-dramatic peaks, sudden drops, and endless speculation.
Mark Camden
August 29, 2025 AT 16:58It is incumbent upon investors to scrutinize the underlying data sources before drawing conclusions from dominance metrics.
Evie View
August 29, 2025 AT 17:03Stop treating dominance like a holy grail-it’s a flimsy yardstick.
Sidharth Praveen
August 29, 2025 AT 17:08Don’t let the numbers spook you; they’re tools to help spot opportunities, not obstacles.
Sophie Sturdevant
August 29, 2025 AT 17:13Take the dominance signal, act fast, and ride the altcoin wave before the crowd catches on.
Kate Roberge
August 29, 2025 AT 17:18Honestly, if you’re not using dominance, you’re probably missing half the market action.