Bitcoin (BTC) market cap dominance refers to the percentage of the total cryptocurrency market capitalization that is held by Bitcoin. It is one of the most widely used indicators to understand how dominant Bitcoin is compared to the rest of the crypto market. When Bitcoin’s share increases, it typically means that traders and investors are consolidating their capital into BTC, especially during times of uncertainty or volatility.
On the other hand, when BTC market dominance declines, it often signals increased confidence in alternative cryptocurrencies, also known as altcoins. This can be the beginning of what many refer to as “altcoin season,” when assets like Ethereum (ETH), Solana (SOL), or even meme coins outperform Bitcoin in terms of returns.