So-called » market tourists avoiding bitcoin (BTC), leaving only long-term investors holding and negotiating the major cryptocurrency framework, according to blockchain analytics firm Glassnode.
In their report OnChain Week July 4, Glassnode analysts reported that bitcoin had one of the worst months in 11 years in June, losing 37.9 %. They added that activity on the Bitcoin network is at levels coinciding with the deepest part of the bear market in 2018 and 2019. They wrote :
“The Bitcoin network is approaching a situation where almost all entities are speculative, and market tourists have been completely wiped out of the asset. »
However, despite the almost complete purge of “ tourists Glassnode noted significant accumulation levels, stating that balances for shrimp – those with less than 1 BTC, and whales – those with 1,000 to 5,000 BTC, ” increasing significantly “.
Shrimps, in particular, find bitcoin’s current prices attractive and are accumulating at a rate of almost 60,500 BTC per month, says Glassnode as “ the most aggressive rate in history “, equals 0.32 % of BTC supply per month.
To explain the purge of these tourism investors, Glassnode pointed out that the number of active launches and active entities has been downward since November 2021, suggesting that new and existing investors are not interacting. with the network.
Launching activity has increased from more than 1 million daily active launches in November 2021 to around 870,000 per day in the past week. Similarly, active entities have about 244,000 per day, compiling multiple addresses belonging to the same person or institution, which Glassnode says is about “ the lower end of the ‘low activity’ channel which is typical of bear markets. »
“The retention of HODLers is evident in this metric, as active entities tend to be sideways, reflecting the stable load of the user,” the analysts told him.
The growth of new entities also slowed with a downturn in the market from 2018 to 2019, with the Bitcoin user base reaching 7,000 net new entities every day.
The number of transactions remains “stagnant and lateral”, reflecting a lack of new demand, but also means holding holders due to market conditions.
Read also: Institutional investors who cut bitcoin account for 80% of weekly flows.
To support his point, Glassnode found that the number of addresses with a non-zero balance, ie those with at least some bitcoin, carry on reaching historic highs and currently has over 42.3 million launches.
Bear markets in the past have been seen clearing wallets as the price of bitcoin has fallen. But with this metric showing otherwise, Glassnode says it shows “ increasing decision-making level among average Bitcoin participants “.