Glassnode: Bitcoin "tourists" have been purged, leaving only holders
So-called "market tourists" are fleeing bitcoin, leaving only long-term investors holding and trading the top cryptocurrency, according to data from blockchain analytics firm Glassnode.
Glassnode analysts said in the chain’s weekly report on July 4 that June was one of Bitcoin’s worst months in 11 years, falling 37.9%. It added that activity on the Bitcoin network was in sync with the height of the bear market in 2018 and 2019, writing:
“The Bitcoin network is approaching a state where nearly all speculative entities and market visitors have been completely purged of the asset.”
However, despite the almost complete removal of "tourists," Glassnode noted a clear level of accumulation, noting that the balances of shrimp (holding less than 1 BTC) and whales (holding 1,000 to 5,000 BTC) had "significantly increased."
Xiami, in particular, finds the current bitcoin price attractive and is accumulating at a rate of nearly 60,500 BTC per month, which Glassnode says is the "most aggressive rate in history", equivalent to 100% of the monthly bitcoin supply. 0.32%.
Explaining the reason for these tourist-type investors being purged, Glassnode revealed that since November 2021, the number of active addresses and entities has seen a downward trend, meaning that neither new investors nor existing investors have contacted the group. Internet interaction.
Address activity has dropped from over 1 million daily active addresses in November 2021 to approximately 870,000 daily active addresses in the past week. Likewise, active entities (multiple addresses owned by the same person or institution) are currently at about 244,000 per day, a figure that Glassnode says is at the “low end of the typical ‘low activity’ channel of a bear market.”
“The retention of long-term holders is more pronounced in this metric, as active entities generally trend sideways, suggesting a stable user baseload,” the analyst added.
The growth of new entities has also hit lows from the 2018-2019 bear market, with Bitcoin’s user count reaching a net daily net 7,000 new entities.
The number of deals remained "stagnant, moving sideways," suggesting a lack of new demand, but also implying that holders are stuck in these market conditions.
"You can see trading demand moving sideways throughout the main body of the bear market" - Glassnode
Glassnode concluded that the number of addresses holding non-zero balances (i.e. holding at least some Bitcoin) continues to hit new all-time highs and now exceeds 42.3 million.
In past bear markets, wallets were emptied when the price of Bitcoin plummeted. Still, Glassnode said the metric points to "increasing resolve among ordinary Bitcoin players."