Bitcoin ‘tourists’ have been purged, only hodlers remain: Glassnode


According to blockchain analytics firm Glassnode, so-called “market tourists” are fleeing bitcoin (BTC), leaving only long-term investors to hold and transact in the top cryptocurrency.

Analysts at Glassnode, in their July 4 OnChain report, noted that June saw bitcoin as one of the worst-performing months in 11 years, losing 37.9%. It said that activity on the bitcoin network is at a level concurrent with the deepest part of the bear market in 2018 and 2019, writing:


“The bitcoin network is approaching a state where almost all speculative entities and market tourists have been completely removed from assets.”

However, despite a near-complete purge of “tourists”, Glassnode noted significant accumulation levels, adding that the balance of shrimp – those with less than 1 BTC, and whales – those with between 1,000 and 5,000 BTC, are at risk. “We’re growing up meaningfully.”

Shrimp, in particular, see the current bitcoin price as attractive and are accumulating it at a rate of around 60,500 BTC per month, which Glassnode calls “the most aggressive rate in history” of 0.32 percent of the BTC supply per month. % Is equal to.

Explaining the purge of these tourist-type investors, Glassnode revealed that the number of active addresses and entities has seen a decline since November 2021, meaning that new and existing investors alike may not interact with the network. are doing.

Address activity has dropped from over 1 million daily active addresses in November 2021 to about 870,000 per day over the previous week. Similarly, active entities, a combination of multiple addresses owned by the same individual or entity, are now at around 244,000 per day, which Glassnode says is typical of bear markets around the lower end of the ‘low activity’ channel.

“The retention of HODLers is more pronounced in this metric, as active entities are generally moving sideways, indicating a stable base-load of users,” analysts said.

Source: glassnode

The growth of new entities has also reached the lows of the 2018 to 2019 bear market, with Bitcoin’s user-base reaching 7,000 daily net new entities.

Transaction numbers remain “steady and sideways,” indicating a lack of new demand, but it also means that holders are being held up through market conditions.

“Transactional demand can be seen to move sideways in the main body of the bear,” – glassnode

related: Institutional investors shorting bitcoin make up 80% of weekly inflows

Furthering its point, Glassnode concluded that the number of addresses with non-zero balances that hold at least some bitcoins is Has sustained To hit an all-time-high and is currently sitting on over 42.3 million addresses.

Previous bear markets saw a purse cleanse when the price of bitcoin fell. Still, with this metric indicating otherwise, Glassnode says it shows an “increasing level of resolution among the average bitcoin participant”.