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What is BTC dominance and how to use it for trading altcoins?
Especially for those who are not yet in the know: BTC.D shows what percentage of the total crypto market is occupied by BTC. It's like an index of the health of the altcoin market.
How it works
The formula is simple: BTC.D = Bitcoin Market Cap / Total Crypto Cap × 100%
Example:
What does rise and fall mean
Dominance is rising → Money is flowing into BTC, altcoins are falling. This is a signal of conservatism.
Domination is falling → People are catching altcoins, diving into alt season. Money is moving there.
History in Numbers
In the early (2010s), BTC.D was 95%+ — there were very few altcoins.
In 2017, the ICO boom: dominance fell to 35% because everyone was chasing new projects.
2018 brought sobriety - projects failed, BTC.D jumped to 70%.
2021: a new altseason began, but then the mining ban in China + the “environmental scandal” with BTC led to panic ( a 30% drop in mining ) and a recovery of dominance.
What does this affect
For altcoin traders — this is the gold index. If BTC.D is falling, it means the market energy is shifting to altcoins, it's the perfect time to look for setups.
For BTC holders — this indicator is not important at all. It doesn't matter whether dominance is rising or falling, the price of BTC goes its own way.
Where to watch
TradingView, CoinMarketCap, Coin360, CoinGecko - there is a BTC.D chart in real time everywhere.
It's not a panacea, but when you understand where the money flows, trading becomes more logical.