27/10/2022
You may have heard traders mention BTC dominance or bitcoin dominance when adjusting their trading strategies🤔.
Before jumping to the conclusion that this is a secret weapon to guarantee the performance of bitcoin or of any other cryptocurrency, note that BTC dominance is a tool 🔧that helps traders see how the market cycles are changing.
In brief, BTC dominance is measured as the ratio of the market capitalization of bitcoin (the total value of the asset in circulation) to that of the rest of the cryptocurrency market.
The bitcoin market cap is calculated by multiplying the current price and the number of BTC that have been mined so far.
👇
BTC dominance = Bitcoin market cap ➗ Total cryptocurrency market cap