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

Published June 23, 2021 | Updated June 23, 2021

Trading Techniques

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”.

Courtesy: Santiment

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 Hashrate Corrects Over 50% In A Month

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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”.

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.

Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Bhushan Akolkar 619 Articles
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
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