Bitcoin Dominance is like a scoreboard showing how big Bitcoin’s total valuation is compared to the rest of the crypto field. If Bitcoin’s dominance is 60%, that means BTC accounts for 60% of the entire digital asset market cap. This number can fluctuate with altcoin pumps (when alt season hits) or when the market rotates heavily into BTC during uncertain times.

Traders and analysts watch dominance to gauge sentiment: a rising dominance often means capital is flowing back into Bitcoin, viewing it as a “safe” crypto asset. A falling dominance implies capital is chasing higher-risk, higher-reward altcoin opportunities. It’s a snapshot of the overall crypto landscape rather than a direct indication of Bitcoin’s own price movements.