Bitcoin Dominance Index: what it shows and why it's important to monitor
The level of Bitcoin dominance and its dynamics reflect the state of the crypto market and help forecast the future behavior of significant digital assets.
What is the Bitcoin Dominance Index?
BTC Dominance (Bitcoin Dominance) is the ratio of Bitcoin's market capitalization to that of all other cryptocurrencies, i.e., altcoins. That's why this metric is also referred to as Bitcoin's dominance over altcoins.
The higher the BTC dominance index value, the larger Bitcoin's share of the crypto market — and vice versa. An increase in BTC dominance indicates an accumulation of Bitcoin. In other words, during such periods, capital flows from altcoins into Bitcoin. This metric helps investors determine the best times to buy or sell Bitcoin or altcoins.
What does BTC dominance indicate?
Depending on whether the BTC dominance index is rising or falling, it reflects the current state of the cryptocurrency market, which may behave similarly to traditional markets.
For example, a rise in Bitcoin Dominance is typical during periods of economic instability — such as rising inflation or changes in the U.S. Federal Reserve's monetary policy.
BTC dominance also increases during crises within the crypto market itself. Examples of such events include:
- The collapse of major crypto exchanges or decentralized platforms (Terra, FTX, Celsius);
- Hacks of popular platforms (Mt. Gox, ByBit);
- Significant sanctions and regulatory crackdowns (crypto bans in China, classification of altcoins as securities).
In times of instability, investors view Bitcoin as a more reliable asset, often shifting their capital from altcoins like Ethereum (ETH), XRP (XRP), Solana (SOL), and others into Bitcoin. For example, during the stock market crash in March 2020, the BTC dominance index jumped by 10% — from 60% to 66%. Similarly, amid regulatory pressure from the U.S. SEC on altcoins and lawsuits against crypto exchanges Binance and Coinbase in 2023, Bitcoin dominance rose from 38% to 52%.
However, suppose Bitcoin's price rises while its dominance declines. In that case, this may indicate the onset of the altcoin season, also known as "alt season" — a period during which other cryptocurrencies outperform Bitcoin in terms of growth rate. This occurs because Bitcoin's growth slows, and optimistic investors begin allocating funds to higher-yield, higher-risk assets, such as altcoins.
The higher the BTC dominance level, the greater the likelihood of an approaching alt season — provided that external and internal factors (e.g., new political decisions, bankruptcies, or major crypto attacks) don't interfere.
For instance, before the peak of alt season in early 2021, Bitcoin dominance stood at 66%, but by May of that year, it had plunged nearly 34% to 44%. While Bitcoin continued to grow rapidly, altcoins saw even sharper jumps amid the DeFi and NFT boom. BTC dominance can also decline when new narratives emerge in the crypto market, such as the adoption of real-world asset (RWA) tokenization, the rise of meme coins, and the development of AI tokens.
A low Bitcoin dominance level may signal an imminent altcoin crash. This means cryptocurrencies are overbought, and investors may start taking profits, triggering a market sell-off.
For example, in 2018, Bitcoin dominance rose more than 1.5 times — from 34% to 53%. However, during that same period, Bitcoin's price fell more than 4.5 times — from $17,500 to $3,800. This indicates that altcoins crashed even harder and faster that year following an overheated ICO* market.
* Initial Coin Offering (ICO) — a fundraising method where new tokens are offered to investors.
Where to check BTC Dominance: index chart
You can track current and historical values of the Bitcoin Dominance Index using services like:
- CoinMarketCap under the "BTC Dominance" section;
- CoinGecko in the "Market Cap Dominance" tab;
- TradingView (chart with ticker BTC.D);
- CryptoRank ("Bitcoin vs Altcoins" chart).
How to use the Bitcoin Dominance Index?
One of the primary uses of the Bitcoin Dominance Index is to identify market trends. For example, when BTC dominance rises — signaling a weakening of altcoins — investors may increase their Bitcoin holdings to diversify or hedge their risk.
Conversely, a decline in BTC dominance during a stagnating or growing Bitcoin price may be a good time to take profits from Bitcoin and reallocate capital into altcoins. This would be a suitable moment to search for altcoins with high-profit potential.
If the price of Bitcoin is falling while its dominance is rising, it suggests capital is exiting altcoins. It may signal the beginning of a prolonged correction in the digital asset market. During such periods, experienced investors often hold capital in stablecoins or maintain open short positions to hedge their risk.
A drop in BTC dominance, along with declining Bitcoin capitalization and price, indicates a general bearish trend in the crypto market. In this case, investors may prefer to wait out the "crypto winter" until Bitcoin dominance starts to rise again.
Current level of Bitcoin dominance
According to the CoinMarketCap monitoring service, as of June 2025, Bitcoin's dominance stands at 64.9%. In other words, the market capitalization of the leading cryptocurrency, which is $2.027 trillion, exceeds that of all altcoins combined (~$1.17 trillion) by more than 1.5 times.
Since the beginning of 2025, BTC dominance has increased by more than 11%. Since November 2022, when it hit a two-year low of 37.9%, Bitcoin's dominance has surged by nearly 69%.
The last time BTC dominance reached such a high level was at the end of 2020 — right before the start of an alt season. After peaking at 69.7%, the index dropped in just five months by more than 1.5 times — to 40%.
However, it's essential to remember that historical Bitcoin dominance levels don't guarantee similar outcomes in the future, as other factors, such as global macroeconomic data, also influence the cryptocurrency market.