One of the most watched indicators in crypto is Bitcoin Dominance (BTC.D), which measures Bitcoin’s market cap as a percentage of the entire cryptocurrency market. When BTC.D begins to decline after hits a new high, it typically signals a rotation of capital from Bitcoin into altcoins.
This pattern reflects market behavior where investors, having seen significant gains in BTC, begin reallocating profits into alternative digital assets, starting with large caps like and SOL, and eventually into smaller, higher-risk tokens.
A steady drop in BTC dominance, especially during a sideways or consolidating BTC price, has historically preceded periods where altcoins significantly outperform Bitcoin, commonly referred to as altseason.
