What exactly does the BTC Dominance Index (BTC.D) measure?

2025-11-29 00:10:24

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One-sentence Definition

BTC.D is the ratio of Bitcoin's market capitalization to the total market capitalization of the entire cryptocurrency market. This number hides the secret of capital flow - it can help you see whether the next wave will be Bitcoin's market or if altcoins are about to take off.

How is it calculated?

The formula is simple:

BTC.D = Bitcoin Market Cap / Total Crypto Market Cap

For example:

The total market capitalization is $160 billion, and the market capitalization of Bitcoin is $70 billion.

BTC.D = 700 ÷ 1600 = 43.8%

What does it mean?

BTC.D rising → Large funds are flowing into Bitcoin, altcoins may be dumped.

BTC.D decreases → Funds are flowing into altcoins or stablecoins, which may indicate a super altcoin season.

In simple terms: BTC.D is the thermometer for the flow of funds.

What do historical trends tell us?

2013: BTC.D was over 95%, with Bitcoin dominating the market.
2017 ICO Craze Period: BTC.D dropped to 35%, altcoins took off collectively
2018 Bull Market Collapse: BTC.D rebounded to 70% as many altcoin projects died.
2021: BTC.D continued to decline, with DeFi and NFTs siphoning off a large amount of funds, while environmental issues impacted Bitcoin sentiment.

Key Insights

⚠️ This indicator is very useful for altcoin investors, it can help you determine whether to switch tracks.

⚠️ This is not very helpful for Bitcoin investors, as BTC fluctuations mainly depend on macro factors and spot demand.

⚠️ You cannot rely solely on BTC.D for decision making; you also need to consider overall market capitalization, on-chain data, etc.

How to track in real time?

Platforms like TradingView, CoinMarketCap, and Coingecko have real-time data that updates automatically.

BTC-0,86%

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