BTC Dominance is the percentage of Bitcoin compared to the total value (market capitalization) of the entire cryptocurrency market**.**
For example:
• If the total cryptocurrency market is valued at $1 trillion,
• If the Bitcoin market cap is $500 billion,
• BTC Dominance = (500 billion ÷ 1 trillion) × 100 = 50%.
Increasing BTC Dominance:
• High demand for Bitcoin.
• It can be considered that investors trust Bitcoin more than other altcoins (Ethereum, Ripple, etc.).
Declining BTC Dominance:
• Investing more in Altcoins or choosing Altcoins instead of Bitcoin.
• An opportunity for Altcoins to successfully earn more value.
Simply put, BTC Dominance is a measure of how much Bitcoin has in the crypto market.