What is Bitcoin Dominance (BTC.D)? And How To Use It Right

You must have come across the term Bitcoin dominance and asked yourself, “What is Bitcoin Dominance and what does it mean?” What is Bitcoin Dominance refers to the proportion of how big the present crypto market is to what percentage Bitcoin has. Being the first and currently the largest cryptocurrency, Bitcoin significantly impacts the entire market—making it essential to understand Bitcoin Dominance in context. When investors ask what is Bitcoin Dominance, they’re often trying to determine how to use this metric to time their trades correctly whether or not the moment to purchase Bitcoin is now or if other coins (altcoins) will perform better.

What Is Bitcoin Dominance?

Bitcoin Dominance (or BTC dominance or BTCD) is similar to a report card measurement of how large Bitcoin is compared to all the other cryptocurrencies available. Think about the entire crypto market like a gigantic pizza. Bitcoin’s slice of the pizza is what we call its dominance.
If Bitcoin occupies half the pizza, then its dominance is 50%. If it shrinks, that means other cryptos—altcoins—are taking larger slices of the pie!
Why does this matter? Because clever traders utilize this “pizza slice” concept to determine when to purchase Bitcoin and when to dive into altcoins.

How to Trade Using Bitcoin Dominance

1. Identifying Altcoin Season

Sometimes, Bitcoin’s slice of the pizza diminishes even when it is on the rise! That usually means altcoins are doing even better. This phenomenon is known as altcoin season, and this is when most small cryptocurrencies start appreciating very quickly.
If you understand what is Bitcoin Dominance and notice it falling, it can signal that an altcoin season is underway. What that does is that it may be a good time to invest in some quality altcoins before they take off!
Later, when the Bitcoin price begins to rise again, that is when you can reinvest your money back into Bitcoin and wait for the next altcoin bubble.

2. Finding the Best Trend

You can also look at Bitcoin dominance and Bitcoin price together to see what is happening in the market.
Here’s a cheat sheet:

• BTC Price Up + BTC Dominance Up = Bitcoin leads the pack. Everyone is buying Bitcoin.
• BTC Price Up + BTC Dominance Down = Altcoins are the winners. Altcoin season is here!
• BTC Price Down + BTC Dominance Up = Altcoins are falling harder than Bitcoin. Altcoins aren’t performing well.
• BTC Price Down + BTC Dominance Down = The whole crypto market is probably falling—another reason to grasp what is Bitcoin Dominance and how it fits into broader trends.

These trends are not always 100% true, but they help you see what’s strong and what’s weak. Understanding Bitcoin dominance can help decode these patterns better.

3. Risk Management

Bitcoin dominance can also help you be risk-conscious. Let’s assume BTC dominance is rising rapidly. That generally means traders are bringing their money back to Bitcoin and away from risky altcoins. If so, it may be a good idea to avoid buying altcoins for a little while. Knowing what is Bitcoin Dominance can help your portfolio avoid major losses by identifying when to move out of riskier assets.

How Traders Utilize Bitcoin Dominance

This is what traders look at when they are tracking Bitcoin dominance:
When the dominance of Bitcoin goes down, it may mean that people are buying other cryptocurrencies, or altcoins, instead of Bitcoin. This is sometimes called an “altcoin season” since the lesser coins are able to increase more rapidly than Bitcoin.
Traders who know Bitcoin Dominance can recognize that when both dominance and price increase, a Bitcoin bull run may be underway. That is when the value of Bitcoin actually goes through the roof because more individuals are purchasing it.

So, by watching Bitcoin dominance and the value of Bitcoin simultaneously, traders attempt to make an educated prediction about what is likely to happen next in the world of cryptocurrencies.

What Occurs When Bitcoin Dominance Decreases

Other coins are more sought after when Bitcoin’s dominance falls.
That shift may mark the beginning of “altcoin season,” and knowing it helps you spot it early.
It is seen by traders as a chance to earn more money by investing in those other tokens.

But that’s where it gets really interesting — you also need to think about Bitcoin’s price at the same time.
If the Bitcoin price is increasing but dominance is decreasing:
It means that many people are buying other coins, too, not just Bitcoin.
It might mean that the whole crypto market is doing well.
Astute investors who understand BD might use this signal to find trending altcoins before they spike.

If both Bitcoin’s price and dominance are declining:
That usually means the market is in trouble.
Investors might start to withdraw their investments and put them into stablecoins (like USDT or USDC), which don’t change much in price.
A few investors might sell their altcoins and then wait for prices to decrease even more before they begin buying them back again.

What Happens When Bitcoin Dominance Is Higher

When Bitcoin dominance is higher, more people will put money into Bitcoin instead of other coins.

If Bitcoin’s price is also going up:
That’s a great sign that people trust Bitcoin.
Market participants might start acquiring more Bitcoin or start getting ready to sell when prices are extremely high.

If Bitcoin dominance is rising but the price is falling:
That is usually a sign that the whole market is weakening.
People might be dumping their altcoins and keeping Bitcoin since it is viewed as more secure.

A Brief Overview of Bitcoin Dominance History

Let us go back in history and see how Bitcoin’s dominance progressed throughout the years.

In the Early Days (Prior to 2017)

Back then, Bitcoin enjoyed over 80–90% dominance—making it easy to see it in a simplified market structure.

2017 – The ICO Boom

Ethereum and a bunch of new coins were created during the ICO frenzy.
Bitcoin dominance was pushed to around 38% as all rushed to invest in new coins.

2018 – The Crash

Most of such new coins failed.
Bitcoin dropped extensively, but still, it was seen as the safer bet.
Bitcoin dominance went back to around 70%.

2020 – The Bull Run

The idea of Bitcoin being “digital gold” gained traction.
Price was from $8,000 to $63,000.
Bitcoin dominance was around 60%.

2021 – DeFi and NFTs Ascend

Humans were captivated by DeFi (Decentralized Finance) and NFTs (Non-Fungible Tokens).
Ethereum and other chains caught on fast.
Bitcoin dominance dropped as altcoins gained more support.

2022 – Market Turmoil

Terra Luna and FTX collapsed, causing widespread loss of confidence in the majority of cryptocurrencies.
In times of crisis, investors often shift funds into Bitcoin—demonstrating what is a Bitcoin’s Dominance looks like during market panic.
Bitcoin dominance went back up to around 45% and then to 36%.

January 2024 – Bitcoin Spot ETFs

Bitcoin Spot ETFs were approved in the U.S., and their impact on what is Bitcoin Dominance became immediately visible as institutional interest surged.
Bitcoin dominance went up to around 49%.

April 2024 – Bitcoin Halving

This happens every four years and reduces the amount of new Bitcoin minted.
This usually makes Bitcoin’s price increase.
Bitcoin dominance did not really change, staying around 50%.

November 2024 – Trump’s Re-Election

When Donald Trump got re-elected, people thought America would get more crypto-friendly.
The price of Bitcoin went up.
Bitcoin dominance reached 55%.

March 2025 – Strategic Bitcoin Reserve

America implemented something that was called the Strategic Bitcoin Reserve, showing support for Bitcoin.
Bitcoin dominance reached 58%, and that is where it stands now.

What Does All This Mean for You?

If you’re thinking of trading or investing in crypto, watch out for BTC dominance. Understanding it can help you see:

• A new season of altcoins
• A bull market (prices going up)
• A bear market (prices going down)

But while understanding what is BTC Dominance is helpful, it should never be the only metric you rely on. Use it in combination with other metrics, like measuring trading volume, price graphs, and market headlines.

Also, keep in mind that stablecoins like USDT or USDC can also affect Bitcoin dominance. When people need to reduce the risk, they will shift their capital into stablecoins, not necessarily Bitcoin only.

Conclusion

If you are an investor in cryptocurrency, Bitcoin dominance is a great barometer of what is occurring in the market. If you look at Bitcoin price and Bitcoin dominance, you can get a sense for whether or not we are in an alt season, a bull cycle (when prices move up), or a bear cycle (when prices fall). Do remember that—do you have the prescience to use it independently?
It is more useful to combine it with other indicators and look at the bigger picture. Furthermore, most people today store money in stablecoins like USDT or USDC to avoid significant price swings. It may affect the Bitcoin dominance look even if Bitcoin has not made a significant move.

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