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Author: Admin | 2025-04-28
Definition of Bitcoin DominanceBitcoin Dominance (BTCD) is a percentage metric that reflects the ratio of Bitcoin to the total value in the cryptocurrency market. Its dominance over other cryptocurrencies shows Bitcoin's influence and dominance over the market.How is Bitcoin Dominance Calculated?Bitcoin Dominance is expressed as a percentage and is calculated as follows: Bitcoin Dominance (%) = (Bitcoin Market Cap / Total Market Cap of All Cryptocurrencies) * 100For example: If the market capitalization of Bitcoin is $600 billion and the total market capitalization of cryptocurrencies is $1.5 trillion, the Bitcoin Dominance rate is 40%.The Importance of Bitcoin Dominance in the Cryptocurrency MarketThe importance of Bitcoin Dominance in the cryptocurrency market can be evaluated in several different ways. This ratio shows the strength and dominance of Bitcoin over other cryptocurrencies, and is therefore indicative of market trends. A high Bitcoin Dominance indicates that Bitcoin is the strongest cryptocurrency in the market. Bitcoin Dominance is one of the key metrics that shows whether the market is in a bull or bear cycle. This makes it easier for traders to understand the cycles and develop their strategies accordingly. In bull cycles, altcoins generally outperform Bitcoin and Bitcoin's Dominance falls. In bear cycles, on the other hand, Bitcoin's dominance increases due to the fact that Bitcoin is heavily favored.History of Bitcoin DominanceThe Beginning and Historical Development of Bitcoin DominanceThe beginning of Bitcoin Dominance dates back to 2009, when Bitcoin was launched. In the early years, Bitcoin Dominance was 100%, as Bitcoin was the only cryptocurrency in the market. Over time, this ratio started to decrease as new cryptocurrencies emerged.Key Milestones and Market ImpactsIn 2013, with the launch of altcoins such as Litecoin and Ripple, Bitcoin Dominance fell below 90%. Bitcoin Dominance experienced a serious decline for the first time while the number and popularity of altcoins increased during this period.2017 saw one of the most dramatic declines in Bitcoin Dominance. With the emergence of Ethereum and other platforms, ICOs (Initial Coin Offering) experienced a huge boom. Bitcoin Dominance fell from 85% to around 40% during this period.In 2018, while the cryptocurrency market witnessed a
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