{"id":22078,"date":"2023-02-09T10:37:40","date_gmt":"2023-02-09T10:37:40","guid":{"rendered":"https:\/\/zebpay.com\/in\/?p=22078"},"modified":"2023-02-09T10:37:42","modified_gmt":"2023-02-09T10:37:42","slug":"what-is-bitcoin-dominance","status":"publish","type":"post","link":"https:\/\/zebpay.com\/in\/blog\/what-is-bitcoin-dominance","title":{"rendered":"What Is Bitcoin Dominance: A Complete Guide"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-bitcoin-dominance\/#Definition_of_Bitcoin_Dominance\" title=\"Definition of Bitcoin Dominance\">Definition of Bitcoin Dominance<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-bitcoin-dominance\/#The_History_of_Bitcoin_Dominance\" title=\"The History of Bitcoin Dominance\">The History of Bitcoin Dominance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-bitcoin-dominance\/#Factors_that_Influence_Bitcoin_Dominance\" title=\"Factors that Influence Bitcoin Dominance\">Factors that Influence Bitcoin Dominance<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-bitcoin-dominance\/#How_Does_BTC_Dominance_Work\" title=\"How Does BTC Dominance Work?\">How Does BTC Dominance Work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-bitcoin-dominance\/#Understanding_Bitcoin_Dominance_Charts\" title=\"Understanding Bitcoin Dominance Charts\">Understanding Bitcoin Dominance Charts<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-bitcoin-dominance\/#How_to_Read_Bitcoin_Dominance_Charts\" title=\"How to Read Bitcoin Dominance Charts\">How to Read Bitcoin Dominance Charts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-bitcoin-dominance\/#Interpreting_Changes_in_Bitcoin_Dominance\" title=\"Interpreting Changes in Bitcoin Dominance\">Interpreting Changes in Bitcoin Dominance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-bitcoin-dominance\/#Comparing_Bitcoin_Dominance_to_Other_Metrics\" title=\"Comparing Bitcoin Dominance to Other Metrics\">Comparing Bitcoin Dominance to Other Metrics<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-bitcoin-dominance\/#Implications_of_Bitcoin_Dominance\" title=\"Implications of Bitcoin Dominance\">Implications of Bitcoin Dominance<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-bitcoin-dominance\/#The_Relationship_Between_Bitcoin_Dominance_and_the_Overall_Crypto_Market\" title=\"The Relationship Between Bitcoin Dominance and the Overall Crypto Market\">The Relationship Between Bitcoin Dominance and the Overall Crypto Market<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-bitcoin-dominance\/#The_Impact_of_Bitcoin_Dominance_on_Altcoins\" title=\"The Impact of Bitcoin Dominance on Altcoins\">The Impact of Bitcoin Dominance on Altcoins<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-bitcoin-dominance\/#Potential_Implications_for_Investors_and_Traders\" title=\"Potential Implications for Investors and Traders\">Potential Implications for Investors and Traders<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-bitcoin-dominance\/#Predictions_for_the_Future_of_Bitcoin_Dominance\" title=\"Predictions for the Future of Bitcoin Dominance\">Predictions for the Future of Bitcoin Dominance<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-bitcoin-dominance\/#Factors_that_Could_Affect_Bitcoin_Dominance_in_the_Future\" title=\"Factors that Could Affect Bitcoin Dominance in the Future\">Factors that Could Affect Bitcoin Dominance in the Future<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-bitcoin-dominance\/#Expert_Opinions_on_the_Future_of_Bitcoin_Dominance\" title=\"Expert Opinions on the Future of Bitcoin Dominance\">Expert Opinions on the Future of Bitcoin Dominance<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-bitcoin-dominance\/#How_to_Trade_Crypto_Using_BTC_Dominance\" title=\"How to Trade Crypto Using BTC Dominance?\">How to Trade Crypto Using BTC Dominance?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-bitcoin-dominance\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-bitcoin-dominance\/#Recap_of_Key_Points\" title=\"Recap of Key Points\">Recap of Key Points<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-bitcoin-dominance\/#Future_outlook_for_Bitcoin_Dominance\" title=\"Future outlook for Bitcoin Dominance\">Future outlook for Bitcoin Dominance<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-bitcoin-dominance\/#FAQs_on_What_is_BTC_Dominance\" title=\"FAQs on What is BTC Dominance\">FAQs on What is BTC Dominance<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-bitcoin-dominance\/#What_Happens_When_BTC_Dominance_Drops\" title=\"What Happens When BTC Dominance Drops?\">What Happens When BTC Dominance Drops?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-bitcoin-dominance\/#What_Happens_When_BTC_Dominance_Goes_Up\" title=\"What Happens When BTC Dominance Goes Up?\">What Happens When BTC Dominance Goes Up?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/zebpay.com\/in\/blog\/what-is-bitcoin-dominance\/#Why_Use_BTC_Dominance_While_Trading_Crypto\" title=\"Why Use BTC Dominance While Trading Crypto?\">Why Use BTC Dominance While Trading Crypto?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n\n<p>When it launched in 2008, Bitcoin was the only crypto coin available in the market. Today, there are thousands of options to choose from. However, Bitcoin remains the largest and most influential coin in the entire crypto space. Its size and popularity have also been found to impact crypto market trends &#8211; sometimes referred to as Bitcoin dominance. So what is Bitcoin dominance and how can you use it in your trading activities?<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Definition_of_Bitcoin_Dominance\"><\/span>Definition of Bitcoin Dominance<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are several coins to choose from in the crypto market. One of the easiest ways to determine their value is to look at their \u201cmarket capitalization\u201d. This is calculated by multiplying the number of tokens by their price. It gives us an idea of how much money the entire supply of tokens is worth.&nbsp;<\/p>\n\n\n\n<p>How is BTC dominance calculated? Bitcoin dominance is defined as the ratio between Bitcoin\u2019s market cap and the entire crypto market\u2019s capitalization.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_History_of_Bitcoin_Dominance\"><\/span>The History of Bitcoin Dominance<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Early in crypto\u2019s history, investors were not very enthusiastic about coins other than Bitcoin. This was reflected in how Bitcoin dominance reached 94% in 2013, as alternatives were not appealing to individuals.&nbsp;<\/p>\n\n\n\n<p>Altcoins gained popularity with the Initial Coin Offering (ICO) boom of 2017. This is when Bitcoin dominance emerged as a compelling index of market performance. But it only became a mainstream metric with the rapid growth of the crypto market in 2021. It is now regularly used by price-tracking platforms as a measurement tool.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Factors_that_Influence_Bitcoin_Dominance\"><\/span>Factors that Influence Bitcoin Dominance<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Many events in the market may affect Bitcoin&#8217;s dominance.&nbsp;<\/p>\n\n\n\n<ul>\n<li>Features of Altcoins &#8211; Most altcoins before 2015 served very simple purposes &#8211; improving on some aspects of Bitcoin. There were no additional features added. This changed with the advent of Ethereum and <a href=\"https:\/\/zebpay.com\/in\/blog\/smart-contracts-on-the-blockchain\" target=\"_blank\" rel=\"noreferrer noopener\">smart contracts<\/a>, which revolutionized what was possible with blockchains. Now, crypto tokens are used everywhere from DeFi to gaming and art, which has reduced BTC dominance.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Stablecoins &#8211; Stablecoins are crypto tokens that eliminate price variability in favour of easier transactions. As more and more individuals use stablecoins for trading and transactions, the crypto market gains value without any change in Bitcoin. This can reduce BTC dominance.&nbsp;<\/li>\n<\/ul>\n\n\n\n<ul>\n<li>Market Cycles &#8211; Bull or bear markets can have uncertain effects on Bitcoin&#8217;s dominance. These days, Bitcoin is considered a relatively safe asset in the crypto space. Thus, in a bear market, BTC dominance will be expected to increase. In a bull market, however, investors would choose to move their funds to riskier alternatives, reducing BTC dominance.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>Read more: <a href=\"https:\/\/zebpay.com\/in\/blog\/what-are-crypto-trading-bots\" target=\"_blank\" rel=\"noreferrer noopener\">What is Crypto Trading Bot<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Does_BTC_Dominance_Work\"><\/span>How Does BTC Dominance Work?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>BTC Dominance works because of Bitcoin\u2019s visibility in the media. Most individuals first learned of Bitcoin when its price almost hit $20,000 in the bull run of 2017. This led to many stories of individuals who suddenly became millionaires or billionaires thanks to BTC\u2019s rapid rise.&nbsp;<\/p>\n\n\n\n<p>Investors soon figured out that calculating Bitcoin\u2019s \u201cpower\u201d or dominance in the market could allow them to measure market performance and sentiments. It is essentially Bitcoin\u2019s share in the crypto market, from which you can draw insights for your investment strategy.&nbsp;<\/p>\n\n\n\n<p>Read more: <a href=\"https:\/\/zebpay.com\/in\/blog\/bitcoin-price-prediction\" target=\"_blank\" rel=\"noreferrer noopener\">Bitcoin Price Prediction<\/a>&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Understanding_Bitcoin_Dominance_Charts\"><\/span>Understanding Bitcoin Dominance Charts<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Now that you know how BTC dominance works, it is important to understand how to read its price charts.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Read_Bitcoin_Dominance_Charts\"><\/span>How to Read Bitcoin Dominance Charts<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img decoding=\"async\" width=\"771\" height=\"557\" src=\"https:\/\/zebpay.com\/in\/wp-content\/uploads\/2023\/02\/Read-Bitcoin-Dominance-Charts-1.png\" alt=\"How To Read Bitcoin Dominance Chart\" class=\"wp-image-22081\" srcset=\"https:\/\/zebpay.com\/in\/wp-content\/uploads\/2023\/02\/Read-Bitcoin-Dominance-Charts-1.png 771w, https:\/\/zebpay.com\/in\/wp-content\/uploads\/2023\/02\/Read-Bitcoin-Dominance-Charts-1-300x217.png 300w, https:\/\/zebpay.com\/in\/wp-content\/uploads\/2023\/02\/Read-Bitcoin-Dominance-Charts-1-768x555.png 768w, https:\/\/zebpay.com\/in\/wp-content\/uploads\/2023\/02\/Read-Bitcoin-Dominance-Charts-1-150x108.png 150w\" sizes=\"(max-width: 771px) 100vw, 771px\" \/><figcaption class=\"wp-element-caption\">Source: Coinmarketcap.com<\/figcaption><\/figure><\/div>\n\n\n<p>This is a typical crypto dominance chart used by many platforms. Here, the X-axis tracks the time. The Y-axis is what determines a coin\u2019s \u201cdominance\u201d. It calculates the market cap of a token as a percentage of the whole crypto market\u2019s capitalization. As you can see, until the beginning of 2017, BTC dominance remained above 80%. Today, this value is closer to 40%.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Interpreting_Changes_in_Bitcoin_Dominance\"><\/span>Interpreting Changes in Bitcoin Dominance<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Changes in dominance can occur due to many reasons. For example, a bear market means declining prices of all assets. Investors may feel their money is more secure in Bitcoin and shift their funds to it, leading to a rise in Bitcoin dominance.<\/p>\n\n\n\n<p>On the other hand, suppose there is a network upgrade to Bitcoin that makes it much more appealing to investors. Bitcoin\u2019s price will rise along with its popularity. This situation would also lead to BTC dominance. However, the causes are different. Thus, it is crucial to look at all aspects of the market to draw meaningful conclusions from BTC dominance data.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Comparing_Bitcoin_Dominance_to_Other_Metrics\"><\/span>Comparing Bitcoin Dominance to Other Metrics<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Why do we use Bitcoin dominance? There are simpler metrics like market capitalization that can be used. The problem is that market cap is an absolute measure. BTC dominance relates Bitcoin\u2019s capitalization to the entire market &#8211; thus forming a more statistically relevant metric.&nbsp;<\/p>\n\n\n\n<p>Imagine if a token ABC has an increase in its market capitalization by 100% &#8211; doubling its value. However, its dominance may rise from 0.1% to 0.2%. The dominance metric allows us to contextualize the gains in a coin.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Implications_of_Bitcoin_Dominance\"><\/span>Implications of Bitcoin Dominance<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Relationship_Between_Bitcoin_Dominance_and_the_Overall_Crypto_Market\"><\/span>The Relationship Between Bitcoin Dominance and the Overall Crypto Market<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Diversity in the market is a good indicator of market breadth. Market breadth is important for individuals who wish for variety in investment opportunities. If Bitcoin\u2019s dominance reduces in the long run, investors will benefit from a larger pool of investments to choose from.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Impact_of_Bitcoin_Dominance_on_Altcoins\"><\/span>The Impact of Bitcoin Dominance on Altcoins<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>As mentioned above, more choice is usually preferred in a financial market. If Bitcoin continues to be the dominant investment, altcoins will not have the opportunity to succeed. They must get the funds and attention required to innovate in the crypto space.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Potential_Implications_for_Investors_and_Traders\"><\/span>Potential Implications for Investors and Traders<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Diversity in both the market and your portfolio reduces risk while allowing for competitive returns. Traders and investors are sure to benefit from lower Bitcoin dominance, as it makes it easier to diversify your portfolio.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Predictions_for_the_Future_of_Bitcoin_Dominance\"><\/span>Predictions for the Future of Bitcoin Dominance<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Factors_that_Could_Affect_Bitcoin_Dominance_in_the_Future\"><\/span>Factors that Could Affect Bitcoin Dominance in the Future<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Decentralized Finance and <a href=\"https:\/\/zebpay.com\/in\/blog\/everything-you-need-to-know-about-dapps\" target=\"_blank\" rel=\"noreferrer noopener\">decentralized applications<\/a> are rapidly growing fields within crypto. Unfortunately, Bitcoin is not a part of this growth as it does not support dApps. As these new features gain more users and popularity, Bitcoin\u2019s dominance in the market will inevitably reduce.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Expert_Opinions_on_the_Future_of_Bitcoin_Dominance\"><\/span>Expert Opinions on the Future of Bitcoin Dominance<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Experts believe that Bitcoin dominance will continue to be a relevant metric in some cases. As of now, every token in the market is compared to Bitcoin. But more relevant comparisons are to those that serve the same purposes &#8211; as a P2P transaction system and store of value. In such cases, Bitcoin dominance may still be important to your investment decisions.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Trade_Crypto_Using_BTC_Dominance\"><\/span>How to Trade Crypto Using BTC Dominance?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img decoding=\"async\" width=\"748\" height=\"310\" src=\"https:\/\/zebpay.com\/in\/wp-content\/uploads\/2023\/02\/How-To-Trade-Crypto-Using-Bitcoin-Dominance.png\" alt=\"How To Trade Crypto Using Bitcoin Dominance\" class=\"wp-image-22083\" srcset=\"https:\/\/zebpay.com\/in\/wp-content\/uploads\/2023\/02\/How-To-Trade-Crypto-Using-Bitcoin-Dominance.png 748w, https:\/\/zebpay.com\/in\/wp-content\/uploads\/2023\/02\/How-To-Trade-Crypto-Using-Bitcoin-Dominance-300x124.png 300w, https:\/\/zebpay.com\/in\/wp-content\/uploads\/2023\/02\/How-To-Trade-Crypto-Using-Bitcoin-Dominance-150x62.png 150w\" sizes=\"(max-width: 748px) 100vw, 748px\" \/><figcaption class=\"wp-element-caption\">Source: Bybit.com<\/figcaption><\/figure><\/div>\n\n\n<p>This table by ByBit presents a good general strategy for using BTC dominance for investments. Comparing the movements of the index with Bitcoin\u2019s trend can give meaningful insights into what your investments should target.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Recap_of_Key_Points\"><\/span>Recap of Key Points<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Bitcoin dominance is the ratio between BTC\u2019s market cap and the entire crypto market\u2019s capitalization. This metric shows Bitcoin\u2019s power to influence the market. It can be used by investors to decide their investment strategy in the crypto market.&nbsp;<\/p>\n\n\n\n<p>Read more: <a href=\"https:\/\/zebpay.com\/blog\/crypto-investing-vs-crypto-trading\" target=\"_blank\" rel=\"noreferrer noopener\">Crypto Investing vs Crypto Trading<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Future_outlook_for_Bitcoin_Dominance\"><\/span>Future outlook for Bitcoin Dominance<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Bitcoin dominance may be losing relevance as a general metric with time. It is expected that other tokens like Ethereum and Solana are going to gain more power in the market in the future.<\/p>\n\n\n\n<p>You can read more about crypto on ZebPay blogs. Begin you crypto trading journey today using ZebPay.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link has-white-color has-text-color wp-element-button\" href=\"https:\/\/connect.zebpay.com\/account\/UserRegistration?returnUrl=%2FAccount%2FCampaignRegister\" target=\"_blank\" rel=\"noreferrer noopener\">trade now<\/a><\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs_on_What_is_BTC_Dominance\"><\/span>FAQs on What is BTC Dominance<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1675938296051\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What_Happens_When_BTC_Dominance_Drops\"><\/span>What Happens When BTC Dominance Drops?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Generally, BTC dominance drops when the market is bullish or there are new tokens that draw investor attention. Depending on the situation, shifting your investment to altcoins may give you higher returns.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1675938342827\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What_Happens_When_BTC_Dominance_Goes_Up\"><\/span>What Happens When BTC Dominance Goes Up?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>This happens when the market is bearish or Bitcoin becomes a more attractive investment opportunity. You may benefit by shifting your investments into BTC.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1675938392338\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"Why_Use_BTC_Dominance_While_Trading_Crypto\"><\/span>Why Use BTC Dominance While Trading Crypto?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Since BTC is the largest token in the market, it has the potential to influence general crypto trends. Understanding the impact of BTC is important for effective <a href=\"https:\/\/zebpay.com\/in\/blog\/crypto-trading-strategies\" target=\"_blank\" rel=\"noreferrer noopener\">crypto trading strategies<\/a>.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>When it launched in 2008, Bitcoin was the only crypto coin available in the market. Today, there are thousands of options to choose from. However, Bitcoin remains the largest and most influential coin in the entire crypto space. Its size and popularity have also been found to impact crypto market trends &#8211; sometimes referred to [&hellip;]<\/p>\n","protected":false},"author":23,"featured_media":22088,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_ayudawp_aiss_exclude":false,"footnotes":""},"categories":[14],"tags":[16],"acf":[],"_links":{"self":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts\/22078"}],"collection":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/users\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/comments?post=22078"}],"version-history":[{"count":0,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/posts\/22078\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/media\/22088"}],"wp:attachment":[{"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/media?parent=22078"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/categories?post=22078"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zebpay.com\/in\/wp-json\/wp\/v2\/tags?post=22078"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}