Bitcoin Dominance

The Bitcoin (BTC) dominance metric is considered important for several reasons:

• Market direction indicator: Bitcoin dominance can be used to understand market sentiment. When BTC dominance is high, it generally implies that investors are more confident in Bitcoin relative to other cryptocurrencies. This can be during times of market uncertainty or volatility, when investors may see Bitcoin as a 'safer' bet because of its larger size and more established reputation. Conversely, when BTC dominance is low, it could mean that investors are more willing to take risks on other, potentially higher-reward cryptocurrencies.
  
  

• Asset diversification: For investors, understanding Bitcoin dominance can help guide decisions about diversifying their portfolio. If Bitcoin dominance is high, they might consider diversifying into other cryptocurrencies to reduce risk. If Bitcoin dominance is low, they might see this as an opportunity to invest in Bitcoin.
  
  

• Market maturity indicator: Bitcoin was the first cryptocurrency and for a long time, it completely dominated the market. However, as the cryptocurrency market matures, many other crypto assets have been developed with unique features and use cases. Therefore, a decline in Bitcoin dominance over time is seen by some as a sign of the cryptocurrency market becoming more mature and diverse.
  
  

• Trading strategy: Traders often look at Bitcoin dominance to decide whether to invest in Bitcoin or altcoins (all other cryptocurrencies). When Bitcoin dominance is increasing, traders might move their assets into Bitcoin expecting it to outperform altcoins. Conversely, if Bitcoin dominance is decreasing, traders might move their assets into altcoins expecting them to provide higher returns.
  
  

It's worth noting, however, that while Bitcoin dominance can provide some insights, it's not a definitive guide to investment strategy or market health. The cryptocurrency market is influenced by many complex factors, and Bitcoin dominance is just one part of the picture.

Yes, you can access live bitcoin dominance data via the CoinMarketCap API, which provides real-time metrics like total market capitalization, Bitcoin dominance, and 24-hour trading volume. You can use the /v1/global-metrics/quotes/latest API endpoint to retrieve this data.

API Endpoint: GET https://pro-api.coinmarketcap.com/v1/global-metrics/quotes/latest

Parameters:

- convert: (optional) Optionally calculate market quotes in up to 120 fiat or cryptocurrency symbols. Example: convert=BTC,USD.
- convertid: (optional) Use CoinMarketCap IDs instead of symbols for conversions. Example: convertid=1,2781.

Response Example:
{
"data": {
"btc_dominance": 67.0057,
"eth_dominance": 9.02205,
"active_cryptocurrencies": 2941,
"active_exchanges": 445,
"totalmarketcap": 2374432083905.6846,
"totalvolume24h": 262906061281.24,
"last_updated": "2024-10-11T02:36:05.986Z"
},
"status": {
"timestamp": "2024-10-11T02:36:05.986Z",
"error_code": 0,
"error_message": null,
"elapsed": 10,
"credit_count": 1
}
}

This API is available on the following plans:

• Basic
• Hobbyist
• Startup
• Standard
• Professional
• Enterprise

Explore the plans and their features on the CoinMarketCap API pricing page.

Yes, you can access historical bitcoin dominance data via the /v1/global-metrics/quotes/historical API endpoint. This allows you to retrieve past global market metrics, such as market capitalization and Bitcoin dominance, based on specified time ranges and intervals.

API Endpoint: GET https://pro-api.coinmarketcap.com/v1/global-metrics/quotes/historical

Parameters:

- time_start: (optional) Timestamp (Unix or ISO 8601) to start returning quotes for. Example: 2024-01-01T00:00:00Z.
- time_end: (optional) Timestamp (Unix or ISO 8601) to stop returning quotes for. Example: 2024-10-01T00:00:00Z.
- interval: Interval of time to return data points for. Example: 1d, hourly, weekly, monthly.
- count: (optional) The number of interval periods to return results for. Example: 100.
- convert: (optional) Optionally calculate market quotes in up to 3 other fiat currencies or cryptocurrencies. Example: convert=USD,EUR,BTC.
- convertid: (optional) Use CoinMarketCap IDs instead of symbols for conversions. Example: convertid=1,2781.

Response Example:

{
"data": {
"quotes": [
{
"timestamp": "2024-01-01T00:00:00.000Z",
"btc_dominance": 45.0057,
"active_cryptocurrencies": 2900,
"totalmarketcap": 2374432083905.6846,
"totalvolume24h": 262906061281.24
},
{
"timestamp": "2024-01-02T00:00:00.000Z",
"btc_dominance": 46.0028,
"active_cryptocurrencies": 2950,
"totalmarketcap": 2385000000000,
"totalvolume24h": 265000000000
}
]
},
"status": {
"timestamp": "2024-10-11T02:36:05.986Z",
"error_code": 0,
"error_message": null,
"elapsed": 10,
"credit_count": 1
}
}

This API is available on the following plans:

- Basic
- Hobbyist (1 month)
- Startup (1 month)
- Standard (3 months)
- Professional (12 months)
- Enterprise (Up to 6 years)

Explore the plans and their features on the CoinMarketCap API pricing page.