*What Is Bitcoin Dominance and How Does It Affect the Crypto Market?*
*What Is Bitcoin Dominance?*
Bitcoin dominance denotes the market share of bitcoin when compared against altcoins. The Bitcoin dominance chart can be used as an indicator to identify crypto market trends, such as an impending altcoin season or an upcoming bitcoin bull run, based on how the chart correlates to the prices of bitcoin and altcoins.
*Key Takeaways*
Bitcoin dominance is the ratio of Bitcoin's market cap to that of altcoins.
Bitcoin dominance is mainly influenced by introducing new potential altcoins, changing market trends, and stablecoin popularity.
Apart from providing a live feed of the number of coins in circulation and their prices, CoinGecko provides the market dominance charts of Bitcoin and some altcoins.
You can use the Bitcoin dominance chart to spot an altcoin season and monitor it alongside the BTC price to spot potential trends.
Understanding Bitcoin Dominance
Bitcoin dominance is the ratio of Bitcoin's market cap to that of alternative coins (altcoins). Altcoins are all other cryptocurrencies apart from bitcoin, where altcoins stand for "alternatives to BTC." When you compare the BTC dominance ratio to that of other assets, you can gain more insights into the investment opportunities the present market condition provides.
Bitcoin dominance is decided by the share of bitcoin's market capitalization when compared to the entire crypto market capitalization. Market capitalization is the total value of the coins that are in circulation. You can calculate it by multiplying the number of coins in circulation by the current value of one coin. For instance, as of May 2024, there are 19,698,990 bitcoins in circulation, at the price of $66,160.86, with a market cap of $1,303,416,531,265.
