What Is Bitcoin Dominance (BTCD)?
Bitcoin Dominance (BTCD) is a measure of the total market capitalization of Bitcoin relative to other cryptocurrencies. It is calculated by dividing the market cap of Bitcoin by the sum of all cryptocurrency market caps. The higher the BTCD, the more dominant Bitcoin is in comparison to other digital currencies.
The concept of BTCD was created as an indicator for investors and traders who want to gauge how much influence Bitcoin has on overall crypto markets. By tracking this metric, it can be used as a tool for predicting future price movements or identifying potential opportunities in altcoins that may benefit from changes in sentiment towards Bitcoin itself. Additionally, some analysts use BTCD as an indication of whether there are any signs that another coin could potentially overtake Bitcoin’s dominance over time.