Bitcoin market share BTC dominance is often simplified by market analysts as a key indicator of market liquidity between Bitcoin and altcoins, and is also one of the main indicators for predicting a frenzied bull market!

However, there is no absolute fixed point for its value in each bull market cycle; whenever it reaches a general range, it basically indicates the general bullish or bearish situation in the market.

The approximate critical ranges are as follows:

1. Moderate bull market 55%-60%

2. Early bull market 60%-70%

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

Looking back at the past two bull market situations:

In the 2017 bull market, Bitcoin's market share once approached 70%. Currently, most funds are concentrated in Bitcoin, but as some altcoins (such as Ethereum, XRP, etc.) began to rise, Bitcoin's share started to decline, and at the peak, BTC D. eventually fell to 36%.

In the 2021 bull market, Bitcoin's market share also showed strong performance at the beginning of the year, once 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 of now, on December 24, BTC D. is around 56% and shows a gradual downward trend. Based on the existing data and market environment, more institutional funds, such as Grayscale, MSTR, and other over-the-counter funds, will enter the market on a large scale, and when the wealth effect supports it, a frenzied bull market is about to begin.

At that time, BTC D. will certainly reach a level below 50%. But everyone remember, do not get carried away; once it touches around 40%, remember to take profits! Follow me, and I will remind you.