Bitcoin dominance measures the percentage of the total crypto market capitalization held by Bitcoin. Currently, BTC accounts for **57.68%** of the market, with a market cap of **$1.75T**.

Why BTC Dominance Matters

High dominance often signals investor preference for safety in Bitcoin, while declining dominance can indicate capital flowing into altcoins. Traders use this metric to anticipate “altcoin seasons” and market rotations.

Interpreting Market Cycles

When BTC dominance rises, altcoins typically underperform as liquidity consolidates into Bitcoin. Conversely, falling dominance suggests risk appetite for smaller-cap assets. This makes BTC dominance a leading indicator for portfolio positioning.

Monitoring BTC Dominance Trends

Watch for sharp moves in dominance alongside Bitcoin price action. A surge in BTC dominance during a rally often signals altcoins lagging, while a drop during consolidation may precede an altcoin breakout.