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Bitcoin dominance: definition
Bitcoin dominance is Bitcoin's share of the total crypto market capitalization.
Definition
If the crypto market is worth $3 trillion and Bitcoin $1.7 trillion, dominance is about 57%.
How to read it
- Rising dominance: capital is concentrating in Bitcoin, altcoins underperform.
- Falling dominance while the market rises: capital is rotating into altcoins, an altseason may be brewing.
Frequently asked questions
Do stablecoins distort dominance?
Partly: when investors sell into stablecoins, crypto market cap falls while stablecoins' doesn't move, which can mechanically raise Bitcoin's dominance.