What is Bitcoin dominance and how to read its chart

Bitcoin dominance is the percentage of total cryptocurrency market capitalization that Bitcoin represents, calculated as Bitcoin’s market cap divided by the total crypto market cap. A rising dominance chart means Bitcoin is gaining market share relative to altcoins—often seen in risk-off phases, market consolidations, or when BTC outperforms—while a falling chart indicates altcoins are growing faster or investors are rotating into higher-risk tokens (“altseason”). Interpreting the chart requires context—changes in stablecoin supply, new token listings, and shifts in total market capitalization can move dominance independently of Bitcoin price. The key implication for Bitcoin is that increasing dominance signals relative strength and potential outperformance versus altcoins (favoring BTC allocation), whereas decreasing dominance suggests altcoins may outperform and capital is rotating away from Bitcoin.