It is important for cryptocurrency owners to quickly assess the market background before exchanging or transferring assets. Bitcoin dominance - the share of BTC capitalisation in the total cryptocurrency market capitalisation - helps with this. The formula is simple: BTC capitalisation / total capitalisation of all crypto assets × 100%. This is the definition used by CoinMarketCap Academy profile guides.

Definition and basic logic

For convenience, let us repeat briefly: bitcoin market dominance is the share of the capitalisation ‘pie’ attributable to BTC. The higher the indicator, the more capital is concentrated in the first crypto-asset, which means that the market moves under its rhythm. To avoid confusing terms, remember:

• • The indicator refers to market share;
• • It is measured in per cent;
• • It changes due to capital inflows or outflows into BTC and alternative coins. These shifts are clearly visible on data aggregators.

The history of the index: from monopoly to cycles

In the first half of the 2010s, bitcoin actually dominated in an absolute sense: the share held in the high 80-90% on average per year. As the ecosystem grew, the cycles began: waves of ICOs (2017), the launch of DeFi and NFT (2020-2021), and new L1/L2s all periodically reallocated capital in favour of alternatives. Key milestones on multi-year statistics are conveniently compiled in CoinGecko Research: averages, lows and highs by year from 2013 to 2025. In brief: 2013-2016 - almost complete concentration; 2017 - sharp decline due to ICO boom; 2019-2020 - return to 60%+; 2021-2023 - share below 50%; 2024-2025 - return to 50-60%+ on the back of institutional inflows.

Such dynamics illustrates the market development: as new segments emerge (smart contracts, DeFi protocols, stablecoins), part of the capital goes to ecosystems with higher yield potential, and in phases of caution, money returns to BTC as the most liquid and understandable asset.

Factors that are shifting the share of BTC

1- Institutional inflows. The launch of spot ETFs in the US in January 2024 created a new demand channel. Already in the first days of trading, the funds gathered substantial volumes and fuelled price appreciation, which bolstered BTC's share of total capitalisation. Later, fund reporting showed expanding positions from asset managers, pension funds and hedge funds.

2- Changing risk appetite. During periods of heightened volatility, investors are more likely to concentrate capital in BTC, and during incipient bullish phases expand risk by adding large altcoins; this pendulum forms share cycles.

3- Technology trends. The emergence of new cases and platforms (DeFi, NFT, L2 solutions) leads to an increase in the aggregate capitalisation of alternatives and reduces the share of BTC in expansion phases.

How to Read the Metric in Combination with Price and Altcoins

This indicator is valuable as a tool for routing capital between BTC and alternatives. Practitioners use a simple interpretation matrix:

Table 1 – Interpretation of BTC Price and Dominance

Such a “combo approach” rarely relies on a single number: analysts also watch BTC.D, ETH/BTC, trading volumes, and the behavior of the top 10 leaders. Video content and ideas on the BTC.D ticker on TradingView help compare your own view with public scenarios.

How to link the index to ‘altcoin season’

A popular benchmark is the Altcoin Season Index from  BlockchainCenter. The rule is simple: the altcoin season is when 75% of the top 50 altcoins have overtaken BTC in the last 90 days. The threshold is immediately visible on the index dashboard; in addition, it's handy to track ETH/BTC and the bitcoin/altcoin dominance graph to see the redistribution over time. In other words, a falling share of BTC at a stable or rising price is a characteristic signal that market breadth is growing and money is starting to disperse across segments. This mode often changes the behaviour of portfolios: from a mono-focus on BTC to a basket of large alts.

How to apply daily

• Check values before exchanging. Open BTC.D on TradingView and the Dominance tab on CoinMarketCap to evaluate the context. This quick check gives a guideline on which pairs to choose and how to prioritise the amounts. Bitcoin's dominance in high values right now is a good argument for a greater share of BTC transactions; a declining share is a reason to look closer at exchanges into strong top-capitalisation alts.
• Put together a ‘monitoring dashboard.’ For operational decisions, use the following combination: bitcoin dominance chart (BTC.D) + BTC price + ETH/BTC + volumes of the required coins. This combination speeds up analysis, helps to prepare limits and choose a window of time for exchange.
• Synchronise with the event calendar. ETF reporting periods, protocol updates, listings - all of these can shift the balance of power in short bursts. Reuters regularly publishes data on inflows/outflows into bitcoin ETFs, which helps gauge capital breathing.

How the outlook is shaping up

A review of publications and studies gives the following picture: the median for 2025 indicates an ‘elevated’ level of BTC share - about 59-63% depending on the aggregators' calculation methodology. The CoinGecko study captures year-on-year averages and highlights the role of institutionalisation after the launch of spot ETFs. Reuters' journalistic reviews also attribute robust demand to inflows into funds and increased participation by large investors. This background limits the likelihood of a broad ‘alt-round’ while the share of BTC remains high, but localised spikes in individual sectors are possible. For more details on this review, please see the link: https://www.reuters.com/business/finance/fund-managers-boost-exposure-bitcoin-etfs-quarterly-us-filings-show-2025-02-15/.

It is important to remember that market trends change in waves. As soon as indicators start signalling expansion - a fall in the share of BTC along with the growth of ETH/BTC and leaders from the top capitalisation - the probability of an alt-season increases. In such periods, it is wise to revise asset shares and switch to the ‘market breadth growth’ scenario.

How to formulate simple rules for yourself

• Evaluate the bundle of signals rather than a single number: BTC.D + BTC price + ETH/BTC + volumes on key pairs.
• Check the news and inflows calendar: major ‘institutional’ events often amplify BTC share.
• Use a checklist before the exchange: which pairs are the priority today? What ratio of funds to choose? What limit should I set given the current volatility?

Conclusion

The metric shows market structure through the share of the first asset. The story shows alternating phases: periods of innovation and ecosystem expansion drive funds into altcoins, while institutional inflows, growing interest in ETFs and cautious regimes return capital to BTC. For practical benefits, keep a ‘dashboard’, monitor inflows into funds and ETH/BTC dynamics, and plan your exchanges according to your day: bitcoin's dominance today often tells you which directions will be more efficient.

The information provided in this article is for informational purposes only and does not constitute a guide to action, financial recommendation or investment advice. Cryptocurrency investments involve a high level of risk and each investor should conduct his/her own analyses, assess his/her financial capabilities and consult with professional financial advisors before making investment decisions.