BTC Dominance refers to the market capitalization of Bitcoin as a percentage of the total market capitalization of the entire cryptocurrency market. The related introduction is as follows:

Calculation Method
It is calculated by dividing Bitcoin's market capitalization by the total market capitalization of the top 125 cryptocurrencies, then multiplying by 100%.

Historical Changes
- In 2013, Bitcoin's market dominance reached as high as 90%, when the cryptocurrency field was in its early development stage with relatively few projects.
- In 2017, with the emergence of a large number of 'altcoins', Bitcoin's market dominance significantly dropped to 41%.
- In 2021, Bitcoin's market dominance fell again to around 40%.
- In 2024, Bitcoin's market dominance continued to rise, reaching a peak of 59.92%, breaking the high since March 2021.

Influencing Factors
- Macroeconomic Environment: Global macroeconomic uncertainties can lead mainstream funds to flow into Bitcoin, which has safe-haven properties, thereby increasing its market dominance. For example, the economic uncertainties in 2024 have promoted the rise of Bitcoin's market dominance.
- Institutional Investment: With the approval of Bitcoin spot ETFs, large amounts of institutional funds have flowed into the Bitcoin market, as they prefer the stable market value of Bitcoin, thus enhancing its market dominance.
- Bitcoin Halving: The reduction in Bitcoin supply, increased demand, and record high hash rate have driven its price up and boosted its market dominance.
- Altcoin Issues: Security vulnerabilities, funding problems, and lagging technological iterations in altcoin projects have led to a decrease in investor trust, compressing their market value share and indirectly increasing Bitcoin's market dominance.

### Market Significance
- Reflecting Market Trends: An increase in Bitcoin's market dominance may indicate that the market is in the early stages of a bull market or that investor risk appetite is low, with funds more likely to flow into relatively stable assets like Bitcoin. Conversely, when Bitcoin's market dominance declines, it may signal the arrival of altcoin opportunities, leading the market into 'altcoin season', where altcoins are expected to experience explosive growth.
- Assessing Market Risks: A high Bitcoin market dominance may imply a high market concentration, with risks relatively concentrated in Bitcoin. If Bitcoin's price experiences significant volatility, it could have a considerable impact on the entire cryptocurrency market.

#比特币市场波动观察