The circulating table on the dominance of bitcoin vs altcoins is a graph that shows the evolution of the relationship between the market capitalization of bitcoin and that of other cryptocurrencies. It is used to measure the relative weight of bitcoin compared to the crypto market as a whole. It is calculated by dividing the market cap of bitcoin by the overall market cap of the first 125 coins, then multiplying it by 100.
This chart is often used by traders and analysts to anticipate crypto market trends, particularly periods known as âalt seasonâ or âbitcoin seasonâ. An alt season is a phase where altcoins outperform bitcoin, while a bitcoin season is the opposite. These phases are generally marked by changes in direction in the bitcoin dominance curve.
For example, we can observe that the dominance of bitcoin reached a peak of 73.63% on January 13, 2021, before falling to 39.66% on May 19, 2021. This period was favorable for altcoins, which experienced a sharp increase in their value. Conversely, since May 19, 2021, bitcoin's dominance has increased to 53.41% as of January 9, 2024, indicating renewed strength of bitcoin compared to altcoins.
