BTC Domination: Indicator of Strength in the Crypto Market

BTC dominance is an indicator that expresses the value of Bitcoin in the total cryptocurrency market. This ratio calculates the ratio between the market value of Bitcoin and the total market value of all cryptocurrencies. BTC dominance shows how dominant Bitcoin is in the cryptocurrency market and the direction of investor interest.

For example, if BTC dominance is 60%, this means that Bitcoin accounts for 60% of the entire cryptocurrency market. When BTC dominance is high, it is generally understood that the market's overall confidence and demand for Bitcoin is high, with less interest in altcoins. A low dominance rate may indicate that altcoins are attracting more attention and investors are more inclined towards risky assets.

BTC dominance is an important metric for understanding market trends and creating investment strategies.