Bitcoin (BTC) has entered its first sharp correction of 2021 after a solid price rally last week! The latest correction comes as the overall crypto-market seems to be in a bloodbath with valuations slipping below $1 trillion.
At press time, Bitcoin (BTC) is down 12.96% trading at $34,086 with a market cap of $636 billion. In a single day, the world’s largest cryptocurrency has eroded more than $100 billion worth of investors’ wealth.
As CoinGape reported earlier today, the latest price sell-off comes amid solid profit-booking by miners. On the other hand, institutional purchases have slowed down which is why the selling pressure from miners is even more prominent. While all this happens, there haven’t been any significant changes in the on-chain fundamentals of the Bitcoin (BTC) network.
Bitcoin (BTC) On-Chain Metrics
As per on-chain data provider Glassnode, the Bitcoin hashrate and mining difficulty are at an all-time high. This indicates good network strength and strong security for the Bitcoin blockchain.
— glassnode (@glassnode) January 11, 2021
Moreover, the daily revenue of Bitcoin (BTC) miners has also spiked to $40 million.
— unfolded. (@cryptounfolded) January 11, 2021
On the other hand, smaller BTC whales holding above 1K BTC continue to accumulate more BTC making the most of the price correction. It looks like the smaller whales have also joined the mega-whales in the latest Bitcoin (BTC) price accumulation.
Addresses with more than 1k $BTC continue growing at the expense of all others–even as this most recent downturn is taking effect.
While you were selling, whales were gobbling up your Bitcoin… pic.twitter.com/cWszH3W9um
— Elias Simos (@eliasimos) January 11, 2021
All these are healthy indicators suggesting strong support for Bitcoin (BTC). Probably, Bitcoin might continue to show some volatility as the fear indicators are hitting new highs. Earlier today, on-chain data provider Santiment stated that the current address activity for Bitcoin continues to grow further at historic rates.
???? #Bitcoin's current address activity, despite the mild -6.7% correction the past 24 hours, continues growing at historic rates. Looking at the 30-day trend of daily active addresses, $BTC continues to increase in addresses unlike 2017's historic run. https://t.co/c33acl0qj3 pic.twitter.com/KU5i2VYvCZ
— Santiment (@santimentfeed) January 11, 2021
Apart from Bitcoin (BTC), other altcoins have entered a deeper correction today. Almost all of the top-ten cryptocurrencies including Ethereum (ETH) are down between 12-20%.