-
Bitcoin $87,772.6996
0.99% - Ethereum
$1,570.5330
-2.49% - Tether USDt
$1.0000
0.01% - XRP
$2.0836
-1.10% - BNB
$599.1765
0.07% - Solana
$138.0201
-2.11% - USDC
$0.9999
0.01% - Dogecoin
$0.1599
0.63% - TRON
$0.2467
0.31% - Cardano
$0.6233
-1.67% - Chainlink
$13.1154
-2.78% - UNUS SED LEO
$9.1017
-1.66% - Avalanche
$19.7493
-1.09% - Stellar
$0.2496
0.02% - Toncoin
$2.9084
-3.65% - Shiba Inu
$0.0...01230
-2.09% - Sui
$2.2248
2.27% - Hedera
$0.1694
-0.70% - Bitcoin Cash
$342.3982
0.49% - Hyperliquid
$18.1794
-0.12% - Litecoin
$78.6773
-0.19% - Polkadot
$3.7586
-4.30% - Dai
$0.9998
-0.02% - Bitget Token
$4.4381
-1.01% - Ethena USDe
$0.9992
0.01% - Pi
$0.6309
-1.94% - Monero
$214.9808
-0.07% - Uniswap
$5.2523
-2.33% - Pepe
$0.0...07838
1.42% - OKB
$50.7171
-0.70%
how bitcoin dominance works
Calculating Bitcoin dominance involves dividing Bitcoin's market capitalization by the total market capitalization of all cryptocurrencies, expressed as a percentage that reflects Bitcoin's relative market share.
Oct 20, 2024 at 05:30 am
Understanding Bitcoin Dominance
Bitcoin dominance refers to the percentage of the total cryptocurrency market capitalization that is attributed to Bitcoin (BTC). It serves as a measure of Bitcoin's relative market share compared to all other cryptocurrencies combined.
How Bitcoin Dominance is Calculated
- Gather Data: Collect the current market capitalization of Bitcoin (BTC) and the total market capitalization of all cryptocurrencies combined.
- Calculate Percentage: Divide Bitcoin's market capitalization by the total market capitalization of all cryptocurrencies. This value is multiplied by 100 to arrive at the Bitcoin dominance percentage.
For example, if Bitcoin's market capitalization is $300 billion and the total market capitalization of all cryptocurrencies is $500 billion, then Bitcoin dominance would be calculated as:
Bitcoin Dominance = (300 billion / 500 billion) * 100 = 60%Significance of Bitcoin Dominance
Bitcoin dominance provides insights into the following:
- Market Sentiment: A high Bitcoin dominance indicates that traders are favoring Bitcoin over other cryptocurrencies.
- Market Maturity: As the cryptocurrency market matures and diversifies, Bitcoin's dominance tends to decline.
- Investor Confidence: High Bitcoin dominance can signify investor trust in Bitcoin as a store of value and medium of exchange.
- Volatility: A significant shift in Bitcoin dominance can indicate increased volatility in the cryptocurrency market.
Factors Influencing Bitcoin Dominance
- Competition: Emergence of new and innovative cryptocurrencies can challenge Bitcoin's market share.
- Adoption: Increased adoption of Bitcoin by institutions and businesses can bolster its dominance.
- Market Cycles: Bitcoin dominance typically peaks during bull markets and declines during bear markets.
- Macroeconomic Factors: Global economic conditions can impact Bitcoin's dominance and the overall cryptocurrency market.
Conclusion
Bitcoin dominance is a metric that provides a snapshot of Bitcoin's relative market share and offers insights into market sentiment, maturity, investor confidence, and volatility. Understanding Bitcoin dominance can help investors make informed decisions and navigate the cryptocurrency market.
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research！
If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.
- The Next 100x Meme Coin Isn't Even Listed Yet: Trolling the Cat Market
- 2025-04-22 08:40:13
- Pepe Coin (PEPE) Price Prediction: Will the Memecoin Breakout?
- 2025-04-22 08:40:13
- SUI Could Rally 28%, AVAX Bulls Take Control—But Web3 ai's AI Tools Are Built to Outlast Them Both
- 2025-04-22 08:35:13
- Tron (TRX) Emerges as the Top Stablecoin Destination, Bringing in $623 Million
- 2025-04-22 08:35:13
- Apart from cryptocurrencies, NFTs are another popular market
- 2025-04-22 08:30:12
- Top 10 Trending Cryptos on DEXTools in April 2025
- 2025-04-22 08:30:12
Related knowledge
How to buy and sell Bitcoin using a P2P platform?
Apr 18,2025 at 05:57pm
Buying and selling Bitcoin using a P2P (peer-to-peer) platform can be an efficient way to trade cryptocurrencies directly with other individuals. This method offers flexibility, often lower fees, and the ability to use various payment methods. In this article, we will walk through the process of buying and selling Bitcoin on a P2P platform, ensuring you...
How to avoid high transaction fees in Bitcoin trading?
Apr 18,2025 at 12:14am
How to Avoid High Transaction Fees in Bitcoin Trading? Bitcoin trading can be exciting, but high transaction fees can quickly erode your profits. Understanding how to minimize these fees is crucial for any trader looking to maximize their returns. In this article, we will explore various strategies and techniques to help you avoid high transaction fees ...
How to see the depth chart of Bitcoin trading?
Apr 17,2025 at 08:36am
Understanding the depth chart of Bitcoin trading is crucial for any serious cryptocurrency trader. The depth chart provides a visual representation of the supply and demand for Bitcoin at various price levels, helping traders make informed decisions about when to buy or sell. In this article, we will guide you through the process of accessing and interp...
How to buy Bitcoin with local currency?
Apr 18,2025 at 01:22am
Buying Bitcoin with local currency is a straightforward process that allows you to enter the world of cryptocurrencies using your familiar fiat money. Whether you are a beginner or an experienced investor, understanding the steps to acquire Bitcoin with your local currency can help you make informed decisions and manage your investments effectively. In ...
What is the Lightning Network in Bitcoin trading?
Apr 19,2025 at 02:35am
The Lightning Network is a second-layer scaling solution designed to enhance the speed and efficiency of Bitcoin transactions. It operates as an off-chain network that allows users to conduct multiple transactions without the need to settle each one individually on the Bitcoin blockchain. This significantly reduces transaction fees and speeds up the pro...
How to buy and sell Bitcoin on a decentralized exchange (DEX)?
Apr 18,2025 at 02:42am
Buying and selling Bitcoin on a decentralized exchange (DEX) offers a different experience compared to traditional centralized exchanges. DEXs provide more privacy and control over your funds, as they allow you to trade directly with other users without an intermediary. This guide will walk you through the process of buying and selling Bitcoin on a DEX,...
How to buy and sell Bitcoin using a P2P platform?
Apr 18,2025 at 05:57pm
Buying and selling Bitcoin using a P2P (peer-to-peer) platform can be an efficient way to trade cryptocurrencies directly with other individuals. This method offers flexibility, often lower fees, and the ability to use various payment methods. In this article, we will walk through the process of buying and selling Bitcoin on a P2P platform, ensuring you...
How to avoid high transaction fees in Bitcoin trading?
Apr 18,2025 at 12:14am
How to Avoid High Transaction Fees in Bitcoin Trading? Bitcoin trading can be exciting, but high transaction fees can quickly erode your profits. Understanding how to minimize these fees is crucial for any trader looking to maximize their returns. In this article, we will explore various strategies and techniques to help you avoid high transaction fees ...
How to see the depth chart of Bitcoin trading?
Apr 17,2025 at 08:36am
Understanding the depth chart of Bitcoin trading is crucial for any serious cryptocurrency trader. The depth chart provides a visual representation of the supply and demand for Bitcoin at various price levels, helping traders make informed decisions about when to buy or sell. In this article, we will guide you through the process of accessing and interp...
How to buy Bitcoin with local currency?
Apr 18,2025 at 01:22am
Buying Bitcoin with local currency is a straightforward process that allows you to enter the world of cryptocurrencies using your familiar fiat money. Whether you are a beginner or an experienced investor, understanding the steps to acquire Bitcoin with your local currency can help you make informed decisions and manage your investments effectively. In ...
What is the Lightning Network in Bitcoin trading?
Apr 19,2025 at 02:35am
The Lightning Network is a second-layer scaling solution designed to enhance the speed and efficiency of Bitcoin transactions. It operates as an off-chain network that allows users to conduct multiple transactions without the need to settle each one individually on the Bitcoin blockchain. This significantly reduces transaction fees and speeds up the pro...
How to buy and sell Bitcoin on a decentralized exchange (DEX)?
Apr 18,2025 at 02:42am
Buying and selling Bitcoin on a decentralized exchange (DEX) offers a different experience compared to traditional centralized exchanges. DEXs provide more privacy and control over your funds, as they allow you to trade directly with other users without an intermediary. This guide will walk you through the process of buying and selling Bitcoin on a DEX,...
See all articles
