Bitcoin Dominance refers to the percentage of the total cryptocurrency market capitalization that belongs to Bitcoin (BTC). It measures Bitcoin’s market cap in relation to the combined market caps of all other cryptocurrencies.

When Bitcoin was the only widely traded digital asset, its dominance was close to 100%. Over time, as new cryptocurrencies and tokens (like ERC-20 assets on Ethereum) entered the market, Bitcoin’s dominance declined.

Bitcoin dominance often shifts during “altcoin seasons,” when alternative cryptocurrencies outperform Bitcoin in terms of price growth and market share. However, this metric is not always tied to bull or bear markets—it’s a ratio, meaning Bitcoin dominance can remain steady even if all crypto prices fall together.

It’s important to note that market cap figures (used to calculate dominance) don’t reflect the actual money flowing into crypto markets, as they’re based on circulating supply multiplied by current price.

Today, Bitcoin’s dominance is far below 100% but remains a key indicator for understanding market trends and the balance of power between Bitcoin and altcoins.