What is Bitcoin Dominance Index?
The Bitcoin Dominance Index is a ratio of the Bitcoin market cap
compared to the whole cryptocurrencies market cap.How to read the Bitcoin Dominance Index?
It gives a quick hint on how the Bitcoin market cap is performing against other crypto market caps, and this is how is calculated:BTC Dominance = (BTC Market Cap / ALL-CRYPTO Market Cap)%
The same formula can be used to know the dominance of every cryptocurrency.
Overall the BTC dominance can be affected by the commonly known Alt seasons
but does not always reflect the down or uptrend of the BTC.
Usually, if the bitcoin dominance index is rising and the altcoin dominance is dropping means that the Bitcoin price is rising or the overall value of altcoins is falling.
If the bitcoin dominance is falling and the altcoin dominance is rising, it means an Alt season is starting.