Bitcoin Dominance

Definition ∞ Bitcoin dominance is a metric that represents Bitcoin’s share of the total cryptocurrency market capitalization. It indicates how much of the entire crypto market value is held by Bitcoin relative to all other digital assets. A high Bitcoin dominance suggests that Bitcoin holds a proportionally larger share of the market’s overall worth.
Context ∞ Bitcoin dominance is a key indicator often discussed in crypto news, reflecting investor sentiment and the flow of capital within the broader digital asset ecosystem. When Bitcoin dominance rises, it often signifies a flight to perceived safety within the crypto space or a period where altcoins are underperforming. Conversely, a declining dominance can suggest increased interest and investment in alternative cryptocurrencies, potentially signaling an altcoin season.