Bitcoin's dominance (BTC. D): How to read an indicator that predicts market movements

In the world of cryptocurrency, one of the most important indicators that investors should watch is the dominance of bitcoin. This parameter tells us what percentage of the total crypto market capitalization will be accounted for by Bitcoin. Understanding bitcoin’s dominance can fundamentally change the way we make investment decisions.

Currently, bitcoin’s dominance is around 56%, which means that Bitcoin makes up a significant part of the overall cryptocurrency market, but at the same time, investors are increasingly diversifying their portfolios.

What is bitcoin dominance and why you should care

Bitcoin dominance, also known as BTC. D, or BTC Dom, is an indicator that shows the ratio of Bitcoin’s market cap to the total capitalization of the entire cryptocurrency market. It is a tool that allows investors to determine where the money is going – to the king of cryptocurrencies or to alternative coins (altcoins).

When bitcoin’s dominance increases, it means that capital flows into Bitcoin, and less interest is paid to altcoins. On the other hand, when bitcoin’s dominance decreases, investors move their funds towards altcoins or stablecoins. This is crucial information because money flows always precede price movements in the market.

It is worth noting that bitcoin’s dominance is only one of the indicators. A trader should not rely entirely on this index, but rather treat it as part of their analytical strategy.

How Do You Calculate Bitcoin Dominance – Simple Formula

The math behind the bitcoin dominance indicator is astonishingly simple:

BTC. D = Bitcoin Capitalization / Total Crypto Market Cap

A practical example: if the total market capitalization is $1600 billion and Bitcoin is worth $700 billion, then:

BTC. D = 700 ÷ 1600 = 0.4375 = 43,8%

Today, these calculations are automated. Platforms like Tradingview, Coinmarketcap, Coin360, and CoinGecko update the indicator in real-time, so you don’t have to do the math manually. All you have to do is log in to one of these sites and watch the changes live.

How to read money flows through bitcoin dominance

Interpreting bitcoin’s dominance is the art of predicting the next big market move. Here’s what you need to know:

Bitcoin’s dominance is growing "The signal suggests that money is flowing into Bitcoin. For altcoin investors, this could be a warning. When Bitcoin attracts capital, altcoins tend to lose value.

Bitcoin’s dominance is declining "This indicates a capital flight from Bitcoin. The money migrates to altcoins or to stablecoins. For altcoin investors, this is the moment they are waiting for.

Keep in mind that the total market cap also changes. When it grows, it means that new money is entering the cryptocurrency market. When it decreases, investment capital looks for safety elsewhere.

Bitcoin’s Dominance History: From 95% to Today’s 56%

Understanding the market’s past helps to anticipate the future. In the early years of cryptocurrency, bitcoin’s dominance hovered around 95% or even higher, as Bitcoin was practically the only game in town.

Everything has changed with the emergence of better and better altcoins. In 2017, when the ICO boom reached a frenzied peak, bitcoin’s dominance plummeted to just 35%. Investors have been pulling out of Bitcoin en masse, fearing (and rightly so) the speculative bubble.

Since 2018, the index has recovered to almost 70%, when many altcoin projects were collapsing. In March 2019, bitcoin’s dominance stabilized around 50.3%, showing the first real equilibrium between Bitcoin and the rest of the market.

The year 2021 brought dramatic fluctuations. First, bitcoin’s dominance began to wane as flows returned to altcoins. All this until May 19, 2021 – when China banned Bitcoin mining. The panic that broke out caused the price of BTC to drop by 30%. Then bitcoin’s dominance will grow again as investors sought refuge in the crypto realm.

Today, in 2026, bitcoin’s dominance has stabilized at around 56%, suggesting a diversified market where Bitcoin and altcoins can grow together rather than compete for capital.

Who is bitcoin dominance important to

Altcoin investors should watch bitcoin’s dominance like a hawk. It’s an indicator that tells them when their moment in the sun might be.

Bitcoin investors may ignore this indicator. Whether bitcoin’s dominance is increasing or decreasing, it does not help in predicting the price of Bitcoin itself. For them, more matters – macroeconomics, monetary policy, institutional adoption.

Where to monitor changes in bitcoin dominance

The three platforms are your main tools:

• Tradingview – Best for traders, offers advanced charting and tools to analyze bitcoin dominance
• Coinmarketcap – Quick overview of the current indicator
• CoinGecko – Free alternative with a good database

They all update the data in real time, so you always have access to the latest information.

Summary – Key Points

Bitcoin dominance is an indicator that tells you where money is going in the cryptocurrency market. As it grows, the money goes to Bitcoin; When it decreases, they move to altcoins. History shows us that this rate is changing – from 95% at the beginning to 56% today. Today, the market is more diversified than ever, but bitcoin’s dominance remains an essential metric to monitor for any investor looking to get one step ahead of the crowd.