According to Glassnode, blockchain analytics firm Glassnode, so-called “market tourists”, are leaving Bitcoin (BTC) and only long-term investors will continue to hold the top cryptocurrency.
Glassnode analysts reported that June was Bitcoin’s worst performing month in 11 years. They lost 37.9%. It also added that activity on the Bitcoin network was at levels comparable to the deepest part the bear market in 2018 or 2019, writing:
“The Bitcoin network is on the verge of reaching a point where nearly all speculative entities and market tourists are gone from the asset.”
Glassnode observed significant accumulations despite the nearly complete purge by “tourists”, and stated that balances of shrimps (those holding less than 1 BTC) and whales (those with 1,000 to 5, 000 BTC) were “increasing significantly.”
Particularly Shrimps see current Bitcoin prices attractive and are accumulating them at a rate close to 60,500 BTC per monthly, which Glassnode claims is “the most aggressive in history” equivalent to 0.32% per month of BTC supply.
Glassnode explained the purge by revealing that both active addresses and entities saw a decline since November 2021. This suggests that new and existing investors are not interfacing with the network.
Over the past week, address activity has dropped from more than 1 million active addresses per day in November 2021 down to 870,000 per hour. Active entities, which are a collection of multiple addresses owned or controlled by the same person, is now at 244,000 per day. This is similar to the “lower end” of the ‘Low Activity channel that is typical of bear markets.
Analysts added that “a retention of HODLers was more evident in this metric as Active Entities is generally trending towards the sideways, indicative of a steady base-load of users.”
From the 2018 to 2019, bear market, the growth of new entities also fell to a low point. The user-base for Bitcoin reached 7,000 daily net new entities.
The transaction count is still “stagnant” and “sideways”, which means there is no new demand, but it also indicates that holders are being retained by market conditions.
“Transactional demands can be seen moving sideways through the main body of the bear,” Glassnode
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Glassnode argued that the number addresses that have a balance of at least one Bitcoin (or more) continues to rise. It currently stands at 42.3 million addresses.
In the past, there was a purge in wallets that occurred when Bitcoin’s price crashed. Glassnode claims that this metric shows an “increasing degree of resolve amongst average Bitcoin participants”.