Bitcoin News

Drop-in Bitcoin Dominance can be bullish signal for Altseason 2021

Bitcoin Dominance

Bitcoin is one of the world’s largest cryptocurrencies by market capitalization (market cap). In addition, it commands a large portion of the trading volume in several cryptocurrency markets. We look at the summative market capitalization of all the existing cryptocurrencies. As a result, we can arrive at a total market cap valuation for the entire cryptocurrency space.


Thus, Bitcoin dominance is the ratio between the market cap of Bitcoin to the rest of the cryptocurrency markets. Bitcoin had a dominant much closer to 100% for many years. However, the Bitcoin dominance dropped significantly as several new cryptocurrencies were created.


Moreover, Bitcoin dominance is often affected by the “alt-seasons.” During alt-season, the altcoins gain more market share compared to Bitcoin, reducing its dominance. However, Bitcoin dominance is not always directly affected by the bull or bear markets as it is a ratio, not an absolute term.

Real value

It means that if Bitcoin price falls and the rest of the cryptocurrency market falls at a similar rate, then the Bitcoin dominance is likely to remain the same. Moreover, we have to remember that Bitcoin dominance doesn’t reflect its actual value.

Market cap

It is also worth noting that the market cap doesn’t mean an influx of money. This measurement is based on the circulating supply and the current market price. So though Bitcoin dominance is less than 100%, it is not necessarily a good or bad thing. It is just a tool that helps us better understand how the Crypto space is evolving.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.