Bitcoin Dominance

Bitcoin dominance is an indicator that measures Bitcoin's market share relative to the entire cryptocurrency ecosystem. It is calculated as the percentage of Bitcoin's market capitalization compared to the total market capitalization of all cryptocurrencies. A high dominance value suggests that Bitcoin is viewed as a safe asset and that investors have greater confidence in it compared to altcoins. This can occur during times of market uncertainty, when investors tend to flock to Bitcoin. Conversely, a decrease in dominance may indicate that investors are seeking opportunities in other cryptocurrencies, which can be driven by innovations, technological developments, or market trends. Dominance is a useful parameter for analyzing the overall health of the cryptocurrency market, as it provides insights into how capital shifts between Bitcoin and other cryptocurrencies. Monitoring dominance can help understand market dynamics and investor preferences.