Bitcoin dominance is simply the share of BTC's market capitalization in the total value of the entire crypto market. If the dominance is 60%, it means that 60% of all money in the crypto market is “frozen” in BTC, while the remaining 40% is spread across altcoins.
Why is this even important?
Bitcoin is the king of the market, and wherever it goes, the crowd follows. The dynamics of its dominance show whether money is flowing into altcoins or, conversely, moving into BTC.
High dominance = investors are nervous and hiding money in BTC. This is a period when a 5% drop in bitcoin takes altcoins down by 10-20%.
Low dominance = people are looking for x's and buying altcoins. But alas — when BTC takes the lead again, altcoins lag in recovery.
Altcoin Season: Not Everyone Sees It the Same Way
Altseason is when altcoins run ahead. On paper, it looks attractive: BTC rising from 65k to 100k gives 1.5X, while some Arbitrum from current prices to $5 could give 10X.
Sounds sweet, but right now, against the backdrop of high BTC dominance, it's not the best time to just buy altcoins on spot.
What to do really?
You need to build an altcoin portfolio, but wait for good entry points. Wait for BTC to start a correction after another surge — that’s when altcoins will cling to their lows. That’s exactly where to catch them.
Learn to analyze charts, understand when BTC is exhausting and where it will bounce — then your time will come.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
BTC Dominance: How It Affects Your Altcoin Portfolio
Bitcoin dominance is simply the share of BTC's market capitalization in the total value of the entire crypto market. If the dominance is 60%, it means that 60% of all money in the crypto market is “frozen” in BTC, while the remaining 40% is spread across altcoins.
Why is this even important?
Bitcoin is the king of the market, and wherever it goes, the crowd follows. The dynamics of its dominance show whether money is flowing into altcoins or, conversely, moving into BTC.
High dominance = investors are nervous and hiding money in BTC. This is a period when a 5% drop in bitcoin takes altcoins down by 10-20%.
Low dominance = people are looking for x's and buying altcoins. But alas — when BTC takes the lead again, altcoins lag in recovery.
Altcoin Season: Not Everyone Sees It the Same Way
Altseason is when altcoins run ahead. On paper, it looks attractive: BTC rising from 65k to 100k gives 1.5X, while some Arbitrum from current prices to $5 could give 10X.
Sounds sweet, but right now, against the backdrop of high BTC dominance, it's not the best time to just buy altcoins on spot.
What to do really?
You need to build an altcoin portfolio, but wait for good entry points. Wait for BTC to start a correction after another surge — that’s when altcoins will cling to their lows. That’s exactly where to catch them.
Learn to analyze charts, understand when BTC is exhausting and where it will bounce — then your time will come.
Use your head before buying, not after.