BTC "tourists" have been exterminated, leaving just hodlers: Glassnode
BTC "tourists" have been exterminated, leaving just hodlers: Glassnode
The number of wallets holding at least some of the assets continues to increase, while the number of active addresses, entities, and transactions on the Bitcoin network are all heading downwards.
According to a blockchain analytics company, so-called "market tourists" are quitting Bitcoin (BTC), leaving only long-term investors to retain and use the leading cryptocurrency.
According to the July 4 Week Onchain analysis, with a loss of 37.9% in June, Bitcoin had one of its worst performing months in 11 years. It continued, writing: The Bitcoin network is reaching a situation where nearly all speculative entities, and market tourists have been entirely expelled from the asset. Activity on the Bitcoin network is at levels coincident with the deepest section of the bear market in 2018 and 2019.
Despite the practically total eradication of "tourists," Glassnode noted strong accumulation levels and said that the balances of shrimps—those holding less than 1 BTC—and whales—those holding 1,000–5,000 BTC—were "increasing meaningfully."
Particularly shrimps find the present Bitcoin rates attractive and are acquiring it at a rate of roughly 60,500 BTC per month, which Glassnode claims is "the most aggressive rate in history," or 0.32 percent of the monthly BTC supply.
In order to explain the removal of these "tourist" investors, Glassnode disclosed that since November 2021, both the quantity of active addresses and companies have decreased, suggesting that both new and existing investors are not engaging with the network.
Address activity dropped from about 1 million active addresses per day in November 2021 to roughly 860,000 over the previous week. In a similar vein, Glassnode reports that there are presently 245,000 active entities—a collection of different addresses owned by the same person or organization—per day, which is "near the lower end of the 'Low Activity' channel typical of downturn markets."
The analysts continued, "HODLers' retention is more apparent in this statistic, as Active Entities is generally going sideways, indicating of a consistent base-load of users."
The growth of new entities has also fallen to lows from the 2018 - 2019 weak market, with the user base of Bitcoin hitting 7,000 daily net new entities.
The transaction count is still "stagnant and sideways," which denotes that there isn't any new demand but also that holders are still being kept around due to market dynamics.
Glassnode came to the conclusion that the number of addresses with a non-zero balance, or those that contain at least some Bitcoin, is currently sitting at over 42.3 million addresses, which is an all-time high.
When the price of Bitcoin fell during bear markets in the past, wallets were cleaned out. However, Glassnode claims that despite this measure suggesting differently, it demonstrates a "growing level of resolve amongst the ordinary Bitcoin participant."
