Bitcoin Dominance (BTC.D) : The Market Barometer to Watch in Crypto

What is Bitcoin dominance?

Bitcoin dominance (noted as BTC.D) measures the share of Bitcoin’s market capitalization relative to the entire cryptocurrency market. The formula is simple:

BTC Dominance (%) = Bitcoin Market Cap ÷ Total Crypto Market Cap × 100

This indicator reveals the strength Bitcoin exerts on the markets. When dominance rises, it means investors are concentrating their resources on Bitcoin. Conversely, a decline indicates capital shifting toward altcoins — alternative currencies.

Current level (January 2026): 55.85% according to market data, reflecting Bitcoin’s continued predominance.

Why is it crucial to track this indicator

Bitcoin dominance is not just a number — it’s a market sentiment signal. It tells the story of where the money is flowing.

Traders use it to:

• Identify if we are entering a “Bitcoin season” (high dominance) or an “alt season” (low dominance)
• Assess risk levels: high dominance = defensive investor behavior
• Make decisions about portfolio diversification
• Anticipate trend changes before they materialize

Concrete example: When Bitcoin dominance rises from 50% to 55%, altcoins generally face selling pressure. Liquidity moves away from smaller projects to focus on Bitcoin.

Where to view the Bitcoin dominance chart

Recommended platforms:

TradingView — The pros’ choice. Simply type the ticker BTC.D to see real-time evolution with all analysis tools (moving averages, RSI, volumes, etc.).

CoinMarketCap — Go to the “Global Charts” section for an overview of the crypto market with Bitcoin dominance front and center.

CoinGecko — The “Market Cap Dominance” tab offers a detailed view of market share distribution.

How to read this chart

• The curve rises = Investors are buying Bitcoin, fleeing altcoins
• The curve falls = Migration to altcoins, potential alt season beginning
• Lateral movement = Market indecision, balance between Bitcoin and altcoins

The secret: never interpret Bitcoin dominance in isolation. Combine it with BTC price and the rest of the market cap for a complete picture.

Scenarios for 2025-2026

Analysts envision several trajectories for Bitcoin dominance:

Scenario 1: Rise to 55–60%

• Usually occurs during correction or bear market
• Investors seek safety by buying Bitcoin
• Altcoins face massive sell-offs

Scenario 2: Drop to 35–40%

• Emergence of a strong alt season (like in 2021)
• Explosion of AI tokens, innovative Web3 projects, or viral memecoins
• Traders heavily speculate on small projects

Current state

At 55.85%, Bitcoin maintains its dominance, but altcoins are gradually gaining ground. It’s an interesting transition zone.

Direct impact on altcoins

When Bitcoin dominance rises:

Altcoins suffer on two fronts — against the dollar AND against Bitcoin. Liquidity dries up, volumes decrease, and secondary projects lose interest.

When Bitcoin dominance falls:

It signals that an alt season is starting. Altcoins often take off spectacularly. Gains of X2 to X10 are possible on mid- or low-cap tokens in a short time.

Using Bitcoin dominance in your trading

Strategy 1: Follow the trend

• Rising BTC dominance? Reduce your altcoin positions.
• Falling BTC dominance? Time to explore small projects.

Strategy 2: Look for divergences

If Bitcoin price drops BUT dominance rises, it’s often a sign that altcoins are crushed. Usually a bad sign for crypto investors.

Strategy 3: Combine with other tools

Don’t rely solely on Bitcoin dominance. Cross-reference with RSI, trading volumes, and market volatility to confirm your hypotheses.

Strategy 4: Take advantage of alt season peaks

Periods of sharp dominance drops never last long. If you’re in altcoins, take profits before Bitcoin returns.

Common questions traders ask

At what level does the alt season start? Generally below 45%, active growth of altcoins begins. It’s a psychological tipping point.

Can Bitcoin dominance fall below 30%? Historically no, but theoretically yes if altcoin ecosystems explode. An extreme scenario, unlikely.

Is Bitcoin dominance a good trading signal? Absolutely, especially when combined with Bitcoin price and trend indicators. It’s a powerful tool among others.

Conclusion

Bitcoin dominance is more than just a percentage — it’s the crypto market’s compass. At 55.85%, Bitcoin’s strong but not overwhelming dominance is observed. It’s a pivotal period where vigilant traders can capitalize on opportunities, whether in Bitcoin or altcoins.

Understanding how to read and use this indicator makes the difference between winning and losing in cryptocurrencies. Whether you’re a holder or an active trader, always keep an eye on this key metric.