MetenaBTC dominance: definition and how to read it
Bitcoin’s share of the total crypto market capitalization. When it rises, it is often at the expense of other cryptocurrencies.
Definition
Bitcoin dominance divides its market capitalisation by that of all crypto-assets. At 60%, bitcoin accounts for six dollars out of every ten invested in the market.
It rises when bitcoin outperforms the rest, often in cautious phases when investors return to the most established asset. It falls when other cryptocurrencies take off.
The figure depends on the list of assets each provider counts, and stablecoins weigh more and more in it: their growth lowers dominance without bitcoin losing ground against other volatile assets.
Worked example
An “80% BTC, 20% altcoins” strategy sees its allocation drift towards altcoins when dominance falls. Watching dominance helps anticipate when a rebalance will be needed.
In Metena
BTC dominance is available as a condition in a Metena strategy, for example to add to altcoins only if it drops below a threshold.
Notify me at launchRelated terms
- Rebalancing
- Adjusting the portfolio to get back to the planned allocation when one holding has risen or fallen too far compared with the others.
- Stablecoin
- A crypto-asset designed to hold a stable value, usually pegged to a currency such as the dollar. Often used as a reserve so you are not 100% invested.
- Fear & Greed
- A sentiment index from 0 (extreme fear) to 100 (extreme greed) that combines several measures of market behavior.
- Tokenomics
- The economics of an asset: quantity issued, unlock schedule, distribution, uses. It sheds light on its long-term value.
Put these ideas into practice.
Write your strategy in a few minutes: Metena analyses it when you ask and explains each term in context.
Notify me at launchEducational content. It is not investment advice. Crypto-assets carry a high risk that can go as far as the total loss of capital.