What is Bitcoin Dominance in 2025?

If you follow crypto trading topics, you’ve probably heard the term Bitcoin Dominance (BTC.D). But what is Bitcoin dominance, and why does it matter?

BTC.D refers to Bitcoin’s share of the total cryptocurrency market capitalization relative to all other digital assets combined. Expressed as a percentage, this metric highlights whether capital flows into BTC — often seen as crypto’s “safe haven” — or diversifies into altcoins.

In simple terms, BTC.D offers a relatively easy way to determine which way the crypto winds are blowing.

Bitcoin dominance is trending at around 63% in early 2025, close to the highs of over 70% last seen in the 2021 bull market. This represents a significant upward trend from BTC.D’s 40% level reached during the 2022 bear market.

If the trend continues, we may yet see BTC.D reach the same levels it reached in 2021. Why does the market watch this metric so closely? Let’s find out.

What Does Bitcoin Dominance Mean?

Bitcoin dominance is the percentage of the total cryptocurrency market capitalization represented by Bitcoin. For example, if the total crypto market cap is $3 trillion and Bitcoin’s market cap is $1.5 trillion, then BTC dominance is 50%. This oft-used metric measures Bitcoin’s market size relative to the rest of the cryptocurrency market.

Fortunately, the math is straightforward. To calculate Bitcoin dominance, we divide Bitcoin’s market cap by the total market cap of all cryptocurrencies and multiply by 100.

For example, if Bitcoin’s market cap is $1 trillion and the total cryptocurrency market cap is $1.5 trillion, we calculate Bitcoin dominance as 66.67%. This means Bitcoin accounts for approximately two-thirds of the total cryptocurrency market cap.

We could express this as:

Many chart tools, such as TradingView, show BTC.D as a percentage, removing the need for hand calculations.

Now that we know how to calculate Bitcoin market dominance, let’s examine the role it plays in broader crypto markets.

BTC Dominance Over the Years

Historical trends offer insight into the significance of Bitcoin dominance. The long-term Bitcoin dominance chart also makes it easy to spot when other projects started to gain meaningful market interest.

First, let’s examine the all-time highs, lows, as well as all-time low levels.

• BTC.D all-time high (early crypto market): ~100%
• Mature market all-time high: ~74%
• BTC.D all-time low: ~35%
• Long-term support: ~39%

According to chart data, BTC dominance remained above 94% until March 2017, indicating a strong market presence for Bitcoin. Other early projects like Litecoin, Dogecoin, and Ethereum, which arrived years later, were still relatively small.

However, this changed dramatically over the next several months, with BTC dominance falling to 35% by January 2018. This significant decline suggested a shift in investor interest towards alternative cryptocurrencies.

Later, BTC.D experienced notable peaks, including September 2019 (73%) and January 2021 (74%). These periods of high BTC dominance indicated increased demand for Bitcoin and a potential decrease in interest in altcoins.

Bitcoin Dominance Long-Term Support and Future Outlook

January 2022 and September 2022 saw a double bottom in BTC dominance, with both periods reaching a low of 39%. This suggested that investors were diversifying their portfolios and exploring other investment opportunities beyond Bitcoin.

Since then, however, BTC dominance has been rising steadily. As of April 2025, it stands at approximately 63%, as investors show renewed interest in Bitcoin. This growth in market share owes some credit to the approval of spot Bitcoin ETFs in the US. Collectively, Bitcoin exchange-traded funds hold more than $90 billion in assets under management (AUM), much of which are backed by bitcoins held by the funds.

Trading tools like Bitcoin dominance on TradingView provide real-time data on BTC.D. The Bitcoin dominance chart will come in handy when we discuss trading strategies later in the guide.

How to Monitor Bitcoin Dominance

To monitor Bitcoin dominance, you can use TradingView. Here’s a quick tutorial:

TradingView offers hundreds of indicators you can add to the chart, including moving averages to smooth out fluctuations and identify overall trends. However, trend-related indicators likely provide the most insight.

In the example below, we used moving averages to indicate major shifts in direction.

Pros and Cons of Bitcoin Dominance

Bitcoin dominance is a widely followed metric in the cryptocurrency space, and for good reason. It provides valuable insights into market sentiment and market trends. By tracking the percentage of the total cryptocurrency market cap that Bitcoin holds, investors can gain a better read on the market’s pulse.

However, like any metric, BTC.D has its advantages and disadvantages. Below, we summarize the main advantages and disadvantages of BTC market dominance.

Some of the key pros of BTC dominance include its ability to gauge investor confidence. For example, when BTC.D is high, it may indicate that investors are seeking a safe-haven asset and are more risk-averse. On the other hand, when dominance is low, it may suggest that investors are more willing to take on risk and invest in alternative cryptocurrencies.

One significant con of Bitcoin dominance is that it provides an incomplete picture of the market. By only considering Bitcoin’s market share, investors may overlook other important factors, such as the quality and potential of individual altcoin projects.

Additionally, as seen in the earlier charts, Bitcoin dominance can be volatile. This volatility makes it challenging to use as a reliable predictor of long-term market trends.

BTC.D also fails to account for differences in liquidity across various cryptocurrencies. This can lead to misleading conclusions, as investors may assume that a cryptocurrency with high dominance is also highly liquid. In fact, it may not be. The Bitcoin community is notorious for HODLing, in good times and in bad.

Bitcoin Dominance and Investment Strategy

Bitcoin market dominance can significantly impact investment strategies in cryptocurrency trading. Understanding how market behavior changes when dominance increases or decreases can help guide your trades.

When Bitcoin dominance increases, it often indicates that investors are seeking safe-haven assets and are more risk-averse. This can be a sign that the crypto market is experiencing a period of consolidation or correction, and alternative cryptocurrencies (altcoins) may be declining in value or interest.

How to Invest When Dominance Increases

As Bitcoin dominance increases, it may indicate a positive market sentiment and a good time to invest in Bitcoin as a safe-haven asset, but keep a wary eye on long-term trends. When capital is moving to Bitcoin, the logical trend is up. Often, this also means less capital is available for other cryptocurrencies. If indicators suggest BTC.D may be changing direction, consider potentially undervalued altcoins.

How to Invest When Dominance Decreases

If the BTC dominance trend reverses, it may be a good time to invest in altcoins with strong fundamentals and growth potential. This rotation from Bitcoin to alts has occurred fairly reliably during past bull markets, but remember, there are no guarantees. Do your research first and prepare for some volatility. Timing is often key. Let’s explore common ways to predict a change in trend.

Using Indicators to Analyze Bitcoin Dominance

Moving averages are a popular and effective BTC technical indicator for analyzing BTC market dominance. By plotting a moving average on the Bitcoin dominance chart, traders can smooth out price fluctuations and identify trends.

For example, a 50-day moving average can help identify short-term trends, while a 200-day moving average can help identify long-term trends. Moving-average crossovers indicate a trend reversal but look to other indicators for confirmation.

Other popular indicators for analyzing Bitcoin dominance include:

• Relative Strength Index (RSI)
• Bollinger Bands
• Support and resistance levels

However, trading volume provides one of the most effective indicators. During the 2021 bull run, trading volume waned prior to Bitcoin’s fall from its then all-time high. In short, many buyers had already moved to other assets or cashed out.

The chart’s lows coincide with the FTX exchange collapse, after which markets began a slow reversal. Although BTC.D began to see gains around the same time period in late 2022, moving average crossovers didn’t confirm the reversal until Spring 2023. Consider using multiple indicators.

Conclusion

Bitcoin dominance provides a crucial metric that can determine the best time to reallocate your crypto portfolio. The number is a simple percentage, representing Bitcoin’s share of the total crypto market. As we’ve seen, a high BTC.D can indicate a risk-averse market, while a low dominance can suggest a more speculative environment.

As you consider your own investment strategy, remember that Bitcoin dominance is just one tool among many that can help you make informed decisions. Apply simple technical analysis, including moving averages and trading volume to identify potential reversals. Understanding trends, combined with fundamental analysis (do your own research), can put you ahead of the pack when markets change direction.

FAQs

References

1. Bitcoin Dominance Reaches 58.8% as Altcoin Market Shrinks and Legacy Cryptos Outperform (finance.yahoo.com)
2. US Bitcoin ETF Tracker & AUM (bitbo.io)
3. Market Cap BTC Dominance (tradingview.com)
4. Indicators and strategies (tradingview.com)
5. A timeline of the collapse at FTX (apnews.com)

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Jose Aquino

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Jose Rafael Aquino is a Filipino writer and entrepreneur that specializes in finance, technology, cryptocurrency, and sports. Versed in the startup tech space, he has written for websites such as The GUIDON, TradingPlatforms, StockApps, and BuyShares. Read More

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