What is Bitcoin Dominance (BTC.D) and why is it important for traders?

ConsensusDissenter

2025-11-06 04:10:18

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Simply put: BTC.D shows the percentage of all crypto market capitalization that is Bitcoin.

The formula is straightforward: Bitcoin Market Cap / Total Crypto Market Cap × 100%

Example: If the total market cap is $1.6 trillion and Bitcoin’s market cap is $700 billion, then BTC.D = 43.8%.

What does this mean for traders?

When BTC.D increases:

Money is flowing out of altcoins into Bitcoin
This signals the market is shifting into a “safe” mode
Altcoins usually decline

When BTC.D decreases:

Investors are taking profits from Bitcoin and moving into altcoins
This is a period when altcoins can surge
A FOMO phase for smaller projects

Historical data:

From 2013-2016: BTC.D was over 95% — altcoins practically didn’t exist

In 2017: The ICO boom flooded the market, BTC.D dropped to 35% — everyone was investing in token hype

2018: The altcoin crash drew funds back into Bitcoin, BTC.D jumped to 70%

2021: Negative news about Bitcoin’s energy consumption, bans in China, plus DeFi hype — BTC.D fell from 60% to 35%, and on May 19, Bitcoin plummeted 30%

Important:

BTC.D is only useful for altcoin traders! If you’re investing directly in Bitcoin, this index won’t help you predict its price.

Where to monitor BTC.D?

TradingView, CoinMarketCap, Coin360, CoinGecko — all update in real-time.

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