2026-01-18 16:22:55

Many people ask when they are watching the market: What is the current trend? Should I chase Bitcoin or speculate on altcoins? Actually, the answer is hidden in one indicator—Bitcoin Dominance, also known as BTC.D.

Simply put, BTC.D is the percentage of Bitcoin's market capitalization relative to the total cryptocurrency market capitalization. The formula is straightforward: BTC.D = Bitcoin Market Cap ÷ Total Cryptocurrency Market Cap. It may seem simple, but it reflects the core capital flow logic of the market.

Why is this indicator so crucial? Because Bitcoin is the market's stabilizing anchor. You will find that the market's ups and downs almost always follow Bitcoin's rhythm. This is not a coincidence; it’s because liquidity, market confidence, and the main capital concentration are centered here. To summarize the pattern simply: When Bitcoin rises, the market follows and goes up; when Bitcoin consolidates sideways, the entire market enters a wait-and-see mode.

How to use BTC.D? It can help you judge where the current market funds are flowing.

When BTC.D is rising, it indicates that funds are flowing into Bitcoin. At this time, altcoins tend to weaken, and risks increase. The most prudent approach during this phase is to focus on Bitcoin and conservative leading assets.

When BTC.D is falling, the situation is reversed. Funds are shifting from Bitcoin to altcoins, which often means the altcoin season has truly arrived. At this point, trading opportunities in various small coins emerge.

What about when BTC.D remains sideways? The market is gathering strength. Funds are accumulating, charging for the next wave of行情. This period also tests patience the most.

However, there is a detail that is easy to overlook: the influx of funds into altcoins is usually not random. It often occurs before a major rally or during Bitcoin's decline, when funds seeking volatility start looking for opportunities in altcoins. Therefore, when analyzing BTC.D, it’s best to combine it with real-time market context; looking at data alone can easily lead to pitfalls.

BTC0.17%

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RealYieldWizard

· 5h ago

BTC.D, to put it simply, is about whether Bitcoin is sucking in blood or not. Does it really have any use? --- Is the altcoin season coming? First check BTC.D, then decide. Don't get caught so badly that you doubt your life. --- I always forget to look at this thing, and as a result, chasing altcoins turns me into a bagholder. --- Sideways trading is the most torturous. Is the capital holding back a big move or should I withdraw? --- Fund flows are clear at a glance; it all depends on whether you're willing to follow the trend. --- Relying solely on data can be deadly; it must be combined with market context. --- When BTC.D rises, I just run for the hills. I've played this game countless times. --- Dominance rate, to put it plainly, is just the exposure of the main players' positions. --- I always operate in the opposite way; when BTC.D rises, I still want to buy the dip.

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OnchainFortuneTeller

· 5h ago

Hmm, BTC.D is basically about where the money is flowing. Don't touch altcoins when Bitcoin is sucking up the market.

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TokenSleuth

· 5h ago

BTC.D is indeed an important perspective to consider, but to be honest, most people still get caught off guard and lose money... The ones who truly make money are never those who just watch indicators, but those who have the courage to chase the trend. This set of theories sounds perfect, but when the market reaches a critical moment, the coins in your hands have already plummeted to nothing.

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AirdropBuffet

· 6h ago

BTC.D, to put it simply, is just about where the funds are flowing; there's nothing mysterious about it. Watching this indicator every day is useless; you also need to pay attention to the overall market sentiment. The copycat season comes and goes quickly; it's more reliable to follow the leading projects. BTC.D is most likely to trap you when it declines; too many people are trying to buy the dip. Sideways trading is the most annoying; waiting for funds to accumulate is better than just waiting around. The key is not to rely solely on indicators; the market is always more cunning than the data.

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