So-called “market tourists” are fleeing bitcoin (BTC), leaving only long-term investors who hold and trade the main cryptocurrency.according to blockchain analytics firm Glassnode.
In their Week Onchain report on July 4, Glassnode analysts note that, In June, bitcoin had one of its worst months in 11 years, losing 37.9%. He added that Bitcoin network activity is at levels concurrent with the deepest part of the 2018 and 2019 bear marketwriting:
“The Bitcoin network is approaching a state where almost all speculative entities and market tourists have been completely purged of the asset.”
However, despite the almost complete purge of “tourists”, Glassnode noted significant levels of accumulation, stating that balances for shrimp, those holding less than 1 BTC, and whales, those holding 1,000 to 5,000 BTC, were “increasing significantly.”.
Shrimp, in particular, find bitcoin’s current prices attractive and are amassing it at a rate of nearly 60,500 BTC a month, which Glassnode says is “the most aggressive rate ever,” equal to 0.32% of Bitcoin supply. BTC per month.
Explaining the purge of these tourist-type investors, Glassnode revealed that both the number of active addresses and the number of entities have seen a downward trend since November 2021, implying that both new and existing investors are not interacting with the network.
Address activity has dropped from over a million daily active addresses in November 2021 to around 870,000 daily addresses over the past week. Similarly, active entities, a collation of multiple addresses owned by the same person or institution, are now approximately 244,000 per day, which Glassnode says is around the “lower end of the ‘low activity’ channel typical of bear markets.”
“HODLer retention is most evident in this metric, as Active Entities trend generally to one side, indicating a stable base load of users,” the analysts add..
New entity growth has also fallen to lows since the 2018-2019 bear market; bitcoin user base has reached 7,000 daily net new entities.
Transaction count remains “stagnant and sideways,” indicating a lack of new demandbut it also means that holders are holding even under market conditions.
Glassnode concludes that the number of addresses with a non-zero balance, i.e. those that have at least some bitcoin, follow reaching all-time highs and currently stands at over 42.3 million addresses.
In previous bear markets, a purge of wallets occurred when the price of bitcoin crashed. However, since this metric indicates otherwise, Glassnode says it shows a “growing level of resolve among the average bitcoin participant.”
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