Bitcoin Market Dominance (BTC Dominance) is often used by market analysts as a key indicator to measure the market liquidity between Bitcoin and altcoins, and is also one of the main indicators for predicting a raging bull market. However, its value does not have an absolute fixed point in each round of bull market; whenever it reaches a rough range, it generally indicates the overall bull-bear situation of the market.

The approximate critical ranges are as follows:

Mid bull market 55%-60%

Early bull market 60%-70%

Bull market peak (altcoin season) 40%-45%

Looking back at the past two bull markets:

In the 2017 bull market, during the initial phase, Bitcoin's market dominance once approached 70%, meaning that most funds were concentrated in Bitcoin. However, as some altcoins (such as Ethereum, XRP, etc.) began to rise, Bitcoin's dominance started to decline, eventually dropping to 36% at the peak.

In the 2021 bull market, Bitcoin's market dominance also performed strongly in the early stages, nearing 70%. However, with the prosperity of DeFi, NFTs, and other altcoins, BTC Dominance began to decline to the range of 40%-45% in the second half of 2021.

As for our current situation, as of December 24, BTC Dominance is around 56%, showing a gradual downward trend. Based on the current data and market environment, with more institutional funds like Grayscale, MSTR, and other off-market funds entering the market on a large scale, and when the wealth effect emerges, the raging bull market will soon begin. At that time, BTC Dominance will certainly fall below 50%. But remember, do not get overly excited; once it approaches around 40%, remember to take profits!