BTC Dominance Excluding Stablecoins

How it works

The indicator calculates Bitcoin's dominance by first retrieving Bitcoin's market capitalization using the CRYPTOCAP:BTC symbol. It then fetches the total cryptocurrency market cap through CRYPTOCAP:TOTAL.

Next, it adjusts the total market cap by subtracting the market caps of major stablecoins like USDT and USDC. The final dominance percentage is computed by dividing Bitcoin's market cap by this adjusted total market cap and multiplying by 100, effectively excluding stablecoin influence.

Why it may be useful

Traditional BTC dominance metrics can be skewed by the massive market caps of stablecoins, which don't represent genuine cryptocurrency market movement. By removing stablecoin market caps, traders get a more accurate representation of Bitcoin's true market share and relative strength.

This refined metric helps investors understand Bitcoin's real position in the cryptocurrency ecosystem, providing clearer insights into market trends, investor sentiment, and potential shifts between Bitcoin and alternative cryptocurrencies.

When to explore it

This indicator is most effective during periods of high cryptocurrency market volatility or significant stablecoin market cap fluctuations. It's particularly useful for traders seeking a nuanced view of Bitcoin's market position beyond standard dominance calculations.

Traders should primarily use this indicator on daily or higher timeframes to ensure smoother, more reliable results. It's especially valuable when analyzing broader market trends, comparing Bitcoin's performance against altcoins, and understanding potential market rotation strategies.

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