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Bitcoin Dominance


Bitcoin was the first ever cryptocurrency and introduced a new asset class to the world. Consequently, it quickly grew to become the most popular and most dominant cryptocurrency in the space. It is the most dominant in terms of market capitalisation. Meaning Bitcoin’s market cap divided by the total cryptocurrency market cap is larger than any other asset’s.


There may be another factor keeping Bitcoin the most dominant cryptocurrency, and that is BTC pairings. Many small-cap altcoins cannot be traded against fiat currency, instead they are paired against Bitcoin and are traded in that manner, even the larger caps that can be traded against fiat currencies, also have a BTC pairing. As a result, this keeps Bitcoin’s demand high, and hence its market cap as well.


As small-cap altcoins are paired with Bitcoin, the Bitcoin dominance can be used to determine whether altcoins will outperform the market dominant or not. However, it cannot be used as a single indication and must be confluenced with other factors.

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