Comment
Author: Admin | 2025-04-28
We all know bitcoin, don’t we? The first commercial cryptocurrency kick-started the global adoption of blockchain technology, peer-to-peer transactions, and almost everything in between. Yet, history isn’t the most interesting aspect of bitcoin. We are interested in BTC dominance — a concept that isn’t just jargon but comes forth as a tradable indicator — led by the bitcoin dominance chart.Here is some perspective! Bitcoin was the first crypto ever. Launched in 2009, it appropriately held 100% of the crypto market share. Over time, other players started showing up. Litecoin, ethereum, and a barrage of altcoins! Consequently, bitcoin dominance started dropping while continuing to serve as an important metric to track the total market capitalization, changing user sentiments, and the state of the crypto market in general.We will keep building on this narrative throughout the subsequent sections!In This Guide:What does bitcoin dominance mean?Factors impacting bitcoin dominanceWhat is the bitcoin dominance chart/index?Benefits of the bitcoin dominance chartDisadvantages of using the bitcoin dominance chartHow to trade crypto using BTC dominanceIs the bitcoin dominance chart a reliable indicator?Bitcoin dominance is a handy trend analysis toolFrequently asked questionsWhat does bitcoin dominance mean?The short answer is (BTC market cap/ total crypto market cap) x 100.The long answer is that BTC dominance is a percentage value that measures how dominant BTC is compared to the total market. The growth of the altcoin space (new coins/tokens showing up each day) has made bitcoin dominance a highly useful tool. Several crypto traders and investors prefer using this resource for fine-tuning their portfolios and trading/investing strategies.Bitcoin’s dominance over other cryptocurrencies: CoinGeckoGrowing BTC dominance means that bitcoin is growing compared to other altcoins. This development might mean the following:BTC is eroding less than other correcting altcoins, especially in a bear market.More BTC is getting added to its supply pool due to increased mining activity.A drop in the overall market capitalization in a bear market.A surge in the overall market capitalization in a bull market, with BTC showing some aggressive price action compared to altcoins. Why only bitcoin and not ethereum?As BTC dominance is a ratio of the bitcoin market cap to the overall market cap, the calculation method holds even for other cryptos. Theoretically, anyone can find out the ethereum or cardano dominance by applying simple mathematics. However, we usually talk only about bitcoin as it started as the first commercial crypto and is still the most dominant one to date — comprising 39% of the entire crypto space — in terms of market capitalization. It’s the first, and it’s big. Hence the attention!Moreover, bitcoin dominance isn’t a standalone concept. If you follow the bitcoin fear and greed index, you would know that “Dominance” is one of the sub-index indicators with
Add Comment