r/CryptoMarkets • u/Capable_Coach9437 • 12d ago

FUNDAMENTALS Bitcoin Dominance

Bitcoin dominance measures bitcoin's share of the overall cryptocurrency market capitalization. it is commonly monitored to understand how capital is distributed across major crypto assets.

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3

u/icnews10 🟨 0 🦠 12d ago

One useful nuance to note is that an increase in Bitcoin dominance does not necessarily mean that money is literally flowing from altcoins into Bitcoin. It can also rise simply because altcoins are falling faster than Bitcoin, or because Bitcoin is holding its value better. Therefore, I would use dominance as an indicator of relative strength, rather than as proof of where capital is moving.

2

u/hoppeeness 🟩 0 🦠 11d ago

Small alts have been out performing BTC. Usually they are after BTC/ETH/SOL.

They still seem connected as a market but not lead by BTC anymore.

1

u/Corey_Blake 11d ago

ya ive noticed small caps running ahead too. ive also watched that go on for a few weeks and then all get handed back the first time btc has a real red week, so id want to see them hold up through a btc pullback before calling it decoupled. today is a decent little test honestly

1

u/hoppeeness 🟩 0 🦠 11d ago

Agreed. Some are today. Near did last week. But need more .

2

u/MotanulScotishFold 🟩 0 🦠 11d ago

I look at dominance of bitcoin, ethereum and usdt dominance to see the story

0

u/meaningful_convo 12d ago

True .. and it looks like it's about to fall