Bitcoin dominance is a widely followed metric in the cryptocurrency market that provides insight into the relative strength of Bitcoin compared to other digital assets. It measures the percentage of the total cryptocurrency market capitalization held by Bitcoin, indicating its influence on the broader market.
The formula for calculating Bitcoin dominance is straightforward: (BTC market cap ÷ total crypto market cap) × 100. By using this metric, traders can gain a better understanding of how much attention, liquidity, and value is concentrated in Bitcoin compared to other cryptocurrencies.