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What is BTC Dominance?

 

Bitcoin dominance, or BTC dominance, is measured as the ratio of the market capitalization of bitcoin to that of the rest of the cryptocurrency market. Some crypto investors and traders use bitcoin dominance as a guide to adjust their trading strategies and portfolio structures. 

 

BTC dominance and market capitalization

 

In simple terms, market capitalization refers to the total value of a certain asset in circulation. For bitcoin, the market cap is calculated by multiplying the current price and the number of BTC that have been mined so far.

 

You can calculate bitcoin dominance with this formula:

Bitcoin dominance = Bitcoin market cap/ Total cryptocurrency market cap

 

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