Bitcoin market capitalization is an indicator that represents the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies . This is calculated by dividing Bitcoin’s market cap by the total market cap of all existing cryptocurrencies.

This indicator provides a picture of the competitive landscape between Bitcoin and other cryptocurrencies (often collectively referred to as altcoins).

A higher share of Bitcoin’s market capitalization means investors prefer Bitcoin over altcoins, indicating they have greater confidence in Bitcoin’s stability or potential returns. This could be due to various factors, such as Bitcoin’s higher acceptance and usage, or investor sentiment towards the cryptocurrency market as a whole.

On the contrary, the lower Bitcoin market capitalization share indicates that altcoins are performing relatively strongly compared to Bitcoin. This could be a sign that investors are exploring and investing in a wider variety of cryptocurrencies as they see greater return potential in these altcoins.

Importantly, however, while Bitcoin market capitalization can help understand the dynamics of the overall cryptocurrency market, it does not necessarily directly reflect the individual performance of Bitcoin or other cryptocurrencies. For example, even if Bitcoin's price remains stable or grows, Bitcoin's dominance may decrease because the total value of altcoins grows faster.