What it is
Bitcoin dominance is a widely observed metric in the cryptocurrency market that indicates Bitcoin's share of the overall market value. It is calculated by dividing Bitcoin's market capitalization by the total market capitalization of all cryptocurrencies and multiplying by 100 to get a percentage. A higher Bitcoin dominance suggests that Bitcoin holds a larger portion of the market's value compared to altcoins, while a lower dominance indicates increasing market share for other digital assets.
Bitcoin dominance is frequently cited in market analysis and news reports to gauge investor sentiment and the health of the broader crypto market. A rising dominance often suggests capital is flowing into Bitcoin, potentially at the expense of altcoins, while a falling dominance can signal an "altcoin season." Readers follow this metric to understand shifts in market leadership and potential trends for their diversified crypto portfolios.
Why it matters
This metric helps retail investors understand Bitcoin's relative strength and influence in the cryptocurrency market, informing decisions about portfolio allocation between Bitcoin and altcoins.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice