Bitcoin Dominance refers to the percentage of the total market capitalization of all cryptocurrencies that is represented by Bitcoin. It is a key metric used by traders and investors to assess Bitcoin’s relative strength compared to the rest of the cryptocurrency market.

When Bitcoin Dominance rises, it indicates that Bitcoin is outperforming other altcoins, often seen during periods of market stability or bullish sentiment for Bitcoin. Conversely, a decline in dominance suggests that other cryptocurrencies are gaining traction, which can happen during altcoin rallies or market corrections. Traders use this metric to inform their investment strategies.

A high dominance can signal a more conservative market outlook, where investors prefer the perceived safety of Bitcoin. A lower dominance might encourage exploration of alternative coins that offer potentially higher returns, albeit with more risk. Overall, Bitcoin Dominance serves as a useful indicator of market trends and investor sentiment, helping individuals navigate their decisions in the ever-changing landscape of cryptocurrency.