According to Glassnode, hardened HODLers are the only strong hands left in the crypto and bitcoin markets as all “tourists” have been kicked out.
In the title of your latest weekly on-chain analytics report bitcoin tourist expulsionBlockchain data provider Glassnode said there has been a complete expulsion of ‘fair weather investors’, with only HODLers remaining.
The massive crypto market flush out, which has shed more than $2 trillion in space since November, was primarily driven by the liquidation of leveraged positions and speculators and the panic selling of weak hands (as they did in previous bear markets). done because of.
The bitcoin price fell by almost 38% in June, making it one of the worst months in history, eclipsed only by monthly dumps during the 2011 bear market. The second quarter was the worst for losses in 11 years.
Coins are flowing in crypto wallet but no history of spending
BTC has been consolidating for the past fortnight while exchange reserves are depleting, indicating that the coins “appear to be flowing into wallets without spending history,” the report reported, before concluding:
“The bitcoin network is approaching a state where almost all speculative entities and market tourists have been completely removed from assets.”
Macroeconomic clouds are darkening
There are several key dates in July where macroeconomic factors come into play in the United States. Analysts largely agree that this bear market has been influenced by more and more economic factors, such as galloping inflation and the cost of living crisis.
The Federal Reserve is on a mission to eliminate inflation at any cost, and that means raising interest rates. This increases the cost of borrowing and encourages more spending and savings. This is generally bad news for riskier assets such as crypto and tech stocks.
The Consumer Price Index (CPI) will be released by the US Bureau of Labor Statistics on July 13. Inflation for June is estimated at 8.7%, slightly higher than May. This could put further pressure on consumer spending and investment.
US interest rates are expected to rise again later this month, putting more pressure on the crypto markets due to higher prices and loan repayments.
keep calm and HODL on
The biggest kicker may come on July 28 when the US Bureau of Economic Analysis (BEA) publishes its GDP estimates for the second quarter. The decline in GDP for two consecutive quarters has created a situation of technical slowdown. The first quarter saw a 1.6% decline in GDP and is expected to be just as bad, with forecasts of -1 to -2% in the second quarter.
This would be the first crypto bear market in a recession, despite the fact that bitcoin was triggered by the 2008 global financial crisis. Hardcore believers are getting ready to close HODL, and look forward to that final surrender.
