Bitcoin dominance shows how big Bitcoin is compared to all other cryptocurrencies . It's like having a big cake (all cryptocurrencies), and the dominance Bitcoin tells you how big the cake that belongs to Bitcoin. If Bitcoin has a big slice, it means that a lot of money is invested in Bitcoin, compared to the other cryptocurrencies.
How to calculate the dominance of Bitcoin (BTC)?
If we were to take an example from January 20, 2025 in which Bitcoin had a capitalization of approximately $ 2.11 trillion (USD) , we can establish the dominant bitcoin using the formula:
In this case we can transpose the above image with the new data and have a clear image of the dominant painting on January 20, 2025
The importance of the dominant bitcoin in the cryptocurrency market
The dominance of Bitcoin (BTC) in the cryptocurrency market is very important and can be understood in several ways. This report shows how powerful and dominant Bitcoin is compared to other cryptocurrencies and offers indications about market trends. If the dominance of Bitcoin is high, it means that Bitcoin is the strongest cryptocurrency in the market.
Bitcoin dominance is one of the most important indicators to understand if the market is in a Bull Market or Low. This helps investors and traders to better understand cycles and create the right strategies.
-
During growth periods (Bull): Other cryptocurrencies (Altcoins) usually grow faster than Bitcoin, and the dominance of Bitcoin decreases.
-
During periods of decrease (bear): Bitcoin dominance increases, because people prefer bitcoin, considering it more safely.
This parameter helps investors to see in which direction the market goes and make better decisions.
Attention !! : If the dominant bitcoin is over 50% does not mean that the price of a BTC will increase, it is just a parameter !!
The impact of the dominant bitcoin for the feeling of investors
A BTC dominance growth usually indicates that the market is more defensive and more cautious about the other cryptocurrencies (Ethereum, Ripple, Shiba Inu). In such periods, investors take less risks when it comes to investments in the rest of cryptocurrencies and are more likely to invest in Bitcoin because they have a lower risk. On the other hand, a decrease in the dominant bitcoin can be considered as a period when the appetite for investments in the other cryptocurrencies increases. In these periods, we see how the market becomes much more volatile and some cryptocurrencies have a spectacular growth in a low temporal space.
The relationship between the other cryptocurrencies and the dominant bitcoin
When the dominance BTC usually increases the price and dominance of the other cryptocurrencies (also called altcoins) decreases or remains constant. And when the dominance of bitcoin decreases, then the other cryptocurrencies accumulate capitalization and their price increases. However, this is not a general rule and it is not a tip for investing, in the situation where you see that this happens.
Where can I buy bitcoin in Romania in 2025?
If you want to buy bitcoin we recommend using the simplest exchange service in Romania, the Abarai platform . Here you can use what currency you want (EUR, USD, RON, GBP, etc.) and you can choose what means of payment best (credit/debit card, bank transfer, paypall, netseller, skrill etc). The transaction takes place in a few minutes and does not require an account. More details about this process can be found in this article .
In the situation where you have other cryptocurrencies, let's say Ethereum and you want to turn it into Bitcoin you can use the swap . This service does not need personal data and the transactions are instances. Currently there are over 2200 cryptocurrencies from which you can choose.
Factors affecting the dominance of Bitcoin
Bitcoin's price changes
At the beginning of 2017 the price of a bitcoin was $ 997. In that year it was a cycle of Bull Market, so in May of that year the price had exceeded the threshold of $ 2,000 reaching the end of the year for a record for that period, over $ 19,000.
If we were to look at the graph in 2017 at the beginning, the dominance of BTC was 85%
In 2018 the price dropped dramatically, registering values of about $ 3,000, during this period the capitalization of Bitcoin but also the dominant BTC in relation to the other cryptocurrency. Then the confidence of the investors was shaken and this was also reflected in the dominance of the BTC.
Since the beginning of 2020, more and more institutions have begun to invest in Bitcoin and its price has taken it up again. Famous companies such as Tesla or Microstrategy have invested a lot, along with other well -known investment funds or other large companies and the price has reached a new record for that period $ 60.
Launch on the market of other cryptocurrencies and their growth in popularity
Other projects have attracted the attention of investors, the Square of Altcoins has evolved a lot. If in the first part only Bitcoin represented an investment, cryptocurrencies such as Monero, Ethereum or Litecoin have attracted considerable capitalization.
The cryptocurrency with the highest capitalization is Ethereum, cryptocurrency created by Vitalik Buterin, Gavin Wood and Toobit has had a spectacular progress since its launch on 30.07.2015. The concept proposed by the founders was successful because it was coming to complete Bitcoin, more precisely on the Ethereum infrastructure, smart contracts and decentralized applications (DAPPS) developed.
Another very popular cryptocurrency is Monero, cryptocurrency that gives its users a much greater anonymity compared to bitcoin. This cryptocurrency at the moment has a capitalization of $ 3.9 billion. This cryptocurrency was launched in 2014 and since then there have been numerous controversy regarding the functionality of this cryptocurrency. Especially the authorities are very dissatisfied because this cryptocurrency can be used for illegal purposes and investigators are very difficult to find the people associated with the addresses.
Launch of new cryptocurrency
The cryptocurrency market is in continuous evolution and growth, with the emergence of new virtual projects and currencies.
-
Cardano (ADA): It is a blockchain platform based on scientific research. In 2020 and 2021, it increased a lot in popularity, and its market capitalization increased rapidly. Cardano is known for intelligent contracts and its sustainable blockchain solutions.
-
Polkadot (dot): It is a powerful project that allows more blockchain to work together. Launched in 2020, Polkadot has become rapidly popular and has a large community of supporters.
-
EGOLD (EGld): It is a cryptocurrency developed by Elrond, a Romanian project that emphasizes the speed of transactions and very low costs. Egold is used for many Defi projects and is appreciated for its innovations.
-
Shiba Inu (Shib): It is a cryptocurrency inspired by a meme, but has quickly gained popularity due to its big and enthusiastic community. Although it has started as a "fun" currency, many people now consider it a serious investment.
-
Solana (soil) was created as a blockchain platform that offers fast and cheap transactions. In 2021, it became extremely popular and became one of the most used platforms for Defi projects and NFT markets.
How can I find out which BTC is dominant?
The simplest way you can find out which BTC is the use of a platform that measures this parameter in real time. In our analysis we used platforms such as TradingView or Coinmarketcap.
If you want to see the dominance of BTC in real time you can access https://coinmarketca.com/charts/bitcoin-dominance/ and as a result you will receive an image like the one below:
Key aspects to be remembered:
-
What is Bitcoin dominance?
The dominance of Bitcoin represents the ratio between the market capitalization of Bitcoin and the total capitalization of the cryptocurrency market. It is an important indicator that shows how powerful Bitcoin is on the market and the level of confidence of investors.
-
How to calculate?
It is calculated by dividing the capitalization of Bitcoin to the total capitalization of the cryptocurrency market.
-
What does it mean if the dominance of Bitcoin decreases?
When dominance decreases, altcoins become more popular and attract more investors willing to take risks.
-
How does the other cots influence the dominance of Bitcoin?
Increasing the capitalization of altcoins brings diversity and competition, which leads to decreased Bitcoin dominance.
-
Where can you check the dominance bitcoin?
You can track the data on platforms such as Coinmarketcap and Tradingview.
-
Discover Abarai:
Abarai is a Romanian exchange platform that offers instant exchange services, Romanian support and all -tranquility.
