Question 1

What is Bitcoin dominance ratio?

Accepted Answer

It is the ratio of Bitcoin market cap to total market capitalization.

Question 2

What is crypto market capitalization?

Accepted Answer

The total market capitalization is the product of the total number of coins of a particular cryptocurrency in circulation and its market price.

Question 3

How are the Bitcoin dominance index and market cap related?

Accepted Answer

Market cap is the denominator of the BTC dominance index and is its major determining factor.

Question 4

Is the Bitcoin dominance factor a reliable indicator of the crypto market trends?

Accepted Answer

If it pertains to the current situation, Yes. However, it should not be the only factor to keep in mind while trading since the crypto market is utterly complex.

What is Bitcoin Dominance and How It Influences the Way You Trade