Bitcoin dominance measures the share of a tracked cryptocurrency market’s total capitalization attributable to Bitcoin. It is calculated as Bitcoin market cap divided by total crypto market cap, multiplied by 100. Market capitalization generally uses price times circulating supply, so this is a valuation ratio, not a count of users or transactions.
Reading the percentage
If Bitcoin’s capitalization is 1.2 trillion and the tracked total is 2 trillion in the same currency, dominance is 60%. The denominator includes Bitcoin itself. If Bitcoin falls in value while other assets fall faster, its dominance can rise despite its price declining. Conversely, dominance may fall while Bitcoin’s price rises if other assets grow faster.
Coverage changes the result
Providers can differ in listed assets, supply estimates and the treatment of stablecoins or wrapped assets. Changes in that coverage can affect comparisons across dashboards or time.
A falling ratio is sometimes associated with altcoin strength, but does not establish that most altcoins are gaining. Nor does a market-cap change equal an equivalent cash inflow or outflow. Dominance describes relative market structure and cannot by itself determine future prices or capital rotation.