Bitcoin Dominance
Bitcoin's share of the total crypto market capitalization, used to gauge where money is rotating.
Bitcoin dominance is Bitcoin's market cap divided by the value of all crypto combined, shown as a percentage. It started near 100% when Bitcoin was the only game in town, fell below 40% at the height of the 2021 altcoin mania, and tends to climb when traders flee risk.
Traders read it as a rotation gauge. Rising dominance often means money is consolidating into Bitcoin, usually in fear or early in a cycle. Falling dominance points to an 'altseason,' when capital spills into smaller, riskier coins. The metric has flaws, since stablecoins and thousands of dead tokens muddy the denominator.
Related terms
The total value of a coin's circulating supply, found by multiplying its price by the coins in circulation.
AltcoinAny cryptocurrency other than Bitcoin, a catch-all that spans serious networks and short-lived speculative tokens alike.
Bull MarketA sustained period of rising prices, when buyers dominate and optimism pushes valuations higher across the market.
Bear MarketA prolonged stretch of falling prices and weak sentiment, usually marked by a drop of 20% or more.