Amid Market Rout, Bitcoin (BTC) Gaining Strength Over Altcoins As “Safe-Haven” Asset

The altcoin party is over and looks like money has started flowing back into BTC! Bitcoin (BTC) has recovered more than 10% from its Tuesday’s low of $29,092 in a quick market-wide recovery. The Bitcoin market dominance has now touched 47% recovering from its lows of under 40% last month.

During Tuesday’s correction, while BTC lost over 10%, almost all of the top ten altcoins tanked over 20% in a single day. Amid this massive market volatility, Bitcoin (BTC) is once again showing its power as a safe-haven asset. On-chain data provider Santiment reports:

“Those who have stayed strong in #Bitcoin on the #crypto downswing have been relatively rewarded compared to high-risk #altcoin traders. $BTC has fallen just -4.5% the past 3 days through the volatility, while $DOGE (-26.1%) & other #alts have dropped hard”.

With yesterday’s price correction, Bitcoin was down more than 50% from its all-time high of $64,000 in mid-April 2021. Another data from Santiment also shows that Bitcoin millionaire whale addresses have been constantly accumulating. The on-chain data provider notes that there are potential signs of a turnaround.

🐳 #Bitcoin was temporarily below half of its #AllTimeHigh value that was reached just 2 months ago after it dropped below $30k today. However, there are signs of a potential turnaround. Read how our whale accumulation & $WETH data could indicate a bounce. https://t.co/nRn0Fmp6sN pic.twitter.com/7TVPkQtwsw

— Santiment (@santimentfeed) June 22, 2021

Bitcoin Hashrate Corrects Over 50% In A Month

The declining BTC hashrate has seen a further drop during the last 24 hours during the market correction. The Bitcoin hashrate has now tanked to 90 EH/s which is a 53% drop from its all-time high in the last 45 days. On the other hand, there’s a notable increase in the Bitcoin (BTC) miner distribution over the last two weeks.

This coincides with the BTC hashrate drop as well as with the Chinese crypto miners shutting down their operations. As Glassnode reports: “Miners have on net distributed at a rate of around 4k to 5k per month over the last two weeks. This has reversed the trend of net accumulation which was active since April”.

#Bitcoin miners have increased their distribution throughout June, as the mining industry experiences the largest migration in history.

Nevertheless, $BTC holdings on OTC desks has reached a new local low, last seen in March 2020.

Read our analysis herehttps://t.co/dRbQgKkwfh pic.twitter.com/9MDXQfVB4l

— glassnode (@glassnode) June 23, 2021

On the other hand, there’s a significant drop in Bitcoin on-chain activity. As Glassnode reports, the number of active BTC addresses has dropped to a 14 month low.

📉 #Bitcoin $BTC Number of Active Addresses (7d MA) just reached a 14-month low of 43,639.482

View metric:https://t.co/SUxtdZ0Wuc pic.twitter.com/JCy7oTn6LC

— glassnode alerts (@glassnodealerts) June 23, 2021