Bitcoin dominance in 2025: What does it mean for your portfolio?

Bitcoin dominance — the indicator that defines the crypto market cycle. In simple terms: it shows what percentage of the total cryptocurrency market value is concentrated in Bitcoin.

The formula is straightforward: take BTC’s market capitalization and divide it by the total market capitalization of all cryptocurrencies. Today, that number hovers around 55.85%, confirming that Bitcoin remains the undisputed king.

Why should this number matter to you?

Because it determines where the money flows. When Bitcoin dominance rises, it means investors are pulling capital from altcoins and seeking refuge in Bitcoin. This is a defensive behavior. When it falls, traders start looking for gains in alternative projects, opening the door to the altseason — that magical period when smaller tokens can multiply 5x, 10x, or more.

Analysts monitor this indicator as the market’s pulse. A high level indicates a bearish market or uncertainty. A low level signals that risk appetite is back.

Where to see and how to interpret the chart

The BTC.D ticker is available on TradingView, CoinMarketCap, and CoinGecko. The chart is easy to read:

• Rising line = investors prefer Bitcoin, altcoins under pressure
• Falling line = capital flowing into Ethereum, Solana, and others
• Lateral line = indecisive market, waiting for a signal

The 2025 cycle: What to expect?

Experts see two likely scenarios:

Bullish scenario for altcoins: If dominance drops to the 35-40% range, we would be in full altseason. This would happen if new trends like (AI tokens, Web3 2.0, and renewed DeFi capture attention. In this scenario, mid-cap projects could generate explosive returns.

Defensive scenario: If it rises to 55-60%, Bitcoin would consolidate its dominance. This would occur if macroeconomic volatility persists or if most altcoins fail to deliver on promises. In this case, hodling BTC is the safest option.

Currently, with dominance near 56%, we are in an intermediate zone — Bitcoin is strong but not overwhelming. Altcoin pressure is increasing.

The direct impact on altcoins

It’s mechanical: when Bitcoin dominance rises, altcoins bleed relative to BTC. You’ll see accelerated declines, lower liquidity, and less interest. Altcoin holders see their positions lose value both against the dollar and Bitcoin.

The opposite is also true. When dominance collapses, altcoins wake up. That’s when traders become aggressive, seeking entry points in “sleeping” projects that suddenly start to move.

How to use this in your strategy

1. Follow the indicator trend, not just BTC price. Price can rise while dominance falls — that means altseason is underway.

2. Look for divergences. If Bitcoin rises but dominance falls, it’s a sign that altcoins are rising faster. Rotation opportunity.

3. Set mental thresholds. Many traders know that below 45% marks serious altseason. Above 60%, it’s time to consolidate.

4. Combine with volume. A drop in dominance accompanied by high volume is more reliable than one without movement.

5. Take profits at peaks. Altseason rarely lasts more than 3-4 months. When you see dominance hitting all-time lows, start exiting.

Conclusion

Bitcoin dominance is not just a number — it’s the map of the market cycle. Understanding it means being able to anticipate capital rotations, identify when it’s time to defend positions in Bitcoin, and when it’s safe to chase gains in altcoins.

In 2025, with dominance around 55-56%, pressure for altseason is real but still contained. The next moves of this indicator will determine whether we see a year of altcoins or if Bitcoin consolidates its empire.

Regularly monitor BTC.D. It’s the most valuable tool for navigating these markets.