Bitcoin at the top: what its dominance in the market really means

Bitcoin Dominance is simply a percentage that shows how much money from the entire crypto market is in Bitcoin. It is calculated as follows:

BTC Dominance = Bitcoin Cap / Total Crypto Cap × 100%

I have been observing this indicator for a long time. When it grows, everyone runs into the cue ball like frightened sheep. When it falls, money flows into alts, often into outright game.

Why keep track of this at all

Frankly speaking, it is impossible to trade normally without understanding dominance:

• It's clear that what's in fashion right now is the “king” or wild altcoins.
• You can predict where the money will go next
• It is clear when to take risks and when to sit in “safe” assets

I myself use this indicator as a barometer of sentiment. High dominance = everyone is scared. Low = the market is like a casino.

Where to watch this thing

I usually use:

• TradingView (тикер BTC. D)
• CoinMarketCap
• CoinGecko

Reading the dominance chart is almost an art. When the line creeps up, everyone rushes to Daddy Bitcoин. When it goes down, money flies into memecoins and other nonsense that no one will remember in a year.

What will happen to domination in 2025

My thoughts on this matter are ambiguous:

Option 1: Domination up to 55-60%

If the madness in the market starts again, everyone will run to BTC as always. A classic story.

Option 2: Drop to 35-40%

If a frenzy starts like in 2021. All these AI tokens, the next “Ethereum killers” and memes with dogs will shoot up again.

We are currently at about 52%. Bit is still holding, but I see that newcomers are already getting bored and want action in alts.

How altcoins depend on dominance

When the bitcoin starts to greedily take over the market:

• Alts are just dumping, especially against BTC
• Liquidity from small projects is being sucked out like through a straw.

When does the dominance fall:

• Alts are shooting up like they're on steroids
• There are opportunities to cut X's on all sorts of nonsense
• This damn “altseason” begins when any trash makes x5

How I Use Dominance in Trading

Here are my working rules:

1. Dominance is rising - I'm dumping alts, they are already dead
2. If the price of Bit falls and dominance rises - alts will just tear apart.
3. I do not look at dominance in isolation - volume and volatility are no less important.
4. I secure profits when dominance is at a minimum - sooner or later dad will return.

What’s next?

Bitcoin Dominance is not just a number; it is an indicator of how sane the market is right now. Understanding its dynamics distinguishes smart traders from those who constantly lose money.

With the current trend of all sorts of junk in the form of web trios, DeFi, and dog memes, this indicator remains the only beacon of common sense in the market.

But remember - the market is irrational longer than you can remain solvent, and no dominance will save you from foolish decisions.