Scan to Download Gate App
qrCode
More Download Options
Don't remind me again today

Bitcoin Dominance: Your Compass in the Crypto Market

robot
Abstract generation in progress

Have you ever wondered why when Bitcoin rises, many altcoins lag behind? The answer lies in an indicator that professional traders constantly monitor: the Bitcoin Dominance (BTC.D).

What Does It Really Mean?

The dominance of Bitcoin is simple: the percentage of the total market value of BTC compared to all cryptocurrencies combined. Currently, it hovers around 56%, which means that out of the $2.3 trillion in total crypto capitalization, Bitcoin alone accounts for $1.3 trillion.

But this is not just a number. It is a thermometer of fear and greed in the market.

Why ( Moves and What It Tells You )

When dominance rises:

  • Investors flee to “safe havens” (Bitcoin)
  • Signal of uncertainty or bear market
  • Altcoins enter a phase of weakness

When dominance decreases:

  • The market is in rally mode (bull market)
  • Investors take on more risk in altcoins
  • Ethereum, Solana and others take off

The reason: the crypto cycles work like this. At the beginning of a bull run, Bitcoin leads and increases its dominance. Then, when euphoria arrives, money seeks the “hidden gems” in altcoins.

How to Use It to Make Money

1. Read the Market Sentiment High dominance = conservative, better Bitcoin. Low dominance = risk period, time for altcoins.

2. Cyclical Diversification Strategy

  • Bitcoin in high dominance? Accumulate BTC
  • Is it starting to go down? It's time to rotate into promising altcoins.

3. Protect Your Portfolio If you are loaded with altcoins and see that BTC.D is rising rapidly, it's a sign to sell some and cover positions.

4. Cycle Hunting For advanced traders: when BTC.D drops significantly, altcoins are about to explode. Historically, the highest returns come after drops in dominance.

The Key Data

Dominance is not static. It depends on sentiment (bull vs bear), the performance of specific projects (Ethereum leading in DeFi moves this metric), and the phase of the market cycle.

Bottom Line

BTC.D is not just a technical number. It is the compass that tells you whether the market is in “safety mode” or “search for gold mode”. Monitor it, and you will be one step ahead of most traders.

BTC-6.39%
ETH-9.05%
SOL-9.22%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
  • Pin
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)