Introduction to Bitcoin Dominance

Bitcoin dominance refers to the percentage of the total cryptocurrency market capitalization that Bitcoin represents. In essence, it provides an overview of the balance of power between Bitcoin and all other alternative cryptocurrencies, colloquially known as altcoins.

The Rise and Fall of Bitcoin Dominance

Bitcoin dominance is known to rise when altcoin holders lose faith and return to Bitcoin. This shift predominantly occurs during bear markets when the cryptocurrency market experiences widespread price drops. For instance, the dominance has increased to 49% today, up from a low of 37% in January 2023. This percentage is not static and fluctuates in response to the market’s sentiments and trends.

Bitcoin Rallies and Altcoin Market Impact

Bitcoin’s performance during market rallies and pullbacks often leads to the destruction of the altcoin market. This phenomenon occurs because the liquidity, or trading volume, tends to return to Bitcoin during such periods. Bitcoin’s perceived lower risk and stronger performance during market downtrends make it a safe harbor in volatile markets.

Dominance Surge: A Tale of Two Cryptos

The typical cycle starts with Bitcoin dominance continuing to rise until the market thinks altcoins are all but dead. In such situations, investors flock back to Bitcoin, driving its price and dominance up. This rally attracts new investors who are eager to participate in the seemingly unstoppable ascent of Bitcoin.

Altcoins and the Quest for 100x Opportunities

As the Bitcoin price increases, some investors start looking at altcoins as potential opportunities for even greater returns. The idea of achieving 100x returns is a lure that can lead to a flow of liquidity out of Bitcoin and into altcoins. Word is spread through excited investor in profit.

The Great Altcoin Rush

New investors who feel they missed out on the Bitcoin rally often rush into altcoins, driving up their prices. This influx of investors into the altcoin market can result in a decrease in Bitcoin’s dominance. The shifting dynamics between Bitcoin and altcoins are an essential feature of the cryptocurrency market, reflecting the continuous evolution of investor sentiment and strategies.


Understanding Bitcoin dominance is a fundamental aspect of cryptocurrency market analysis. By analyzing Bitcoin’s dominance and its changes, investors can better navigate the complex landscape of cryptocurrency investments, making informed decisions based on market trends and shifts.