Bitcoin Domination (BTCD)
In short: Bitcoin Domination, more often called Bitcoin dominance (BTCD), is the ratio that shows how much of the total cryptocurrency market value belongs to…
Bitcoin Domination, more often called Bitcoin dominance (BTCD), is the ratio that shows how much of the total cryptocurrency market value belongs to Bitcoin. It is calculated by dividing Bitcoin's market capitalization by the combined market capitalization of all cryptocurrencies and is usually shown as a percentage.
Why it matters
Traders watch BTCD to see how money is spread between Bitcoin and other coins: a rising share means Bitcoin is gaining weight relative to altcoins, and a falling share means the rest of the market is growing faster or shrinking more slowly. The figure depends on which coins a data provider counts, so different websites can show different values. Most providers include stablecoins in the total, so a growing stablecoin supply can lower BTCD even when Bitcoin itself does not move. BTCD describes how the market is composed; on its own, it does not predict prices.
Example
Suppose the whole crypto market is worth 1,000 units of money and Bitcoin's market cap is 450 of those units. BTCD is then 450 ÷ 1,000, or 45%. If altcoins gain value while Bitcoin stays flat, lifting the total to 1,125 units, BTCD falls to 40%, even though Bitcoin's own price has not changed at all.