Do you think this is good or bad news for crypto? Bitcoin ‘tourists’ cleaned, only ‘hodlers’ left

So-called “market tourists” shun bitcoin (BTC), leaving only long-term investors to hold and trade in the leading cryptocurrency, according to blockchain analysis firm Glassnode.

In its Onchain report for the week of July 4, Glassnode analysts said that in June, bitcoin experienced one of its worst performances in 11 years with a loss of 37.9%. They added that the activity on the Bitcoin network is at levels corresponding to the deepest part of the bear market in 2018 and 2019, and wrote:

Despite the almost complete purge of “tourists”, Glassnode noted significant levels of accumulation, stating that the balances of shrimp – those holding less than 1 BTC and whales – those holding between 1,000 and 5,000 BTC, “increased significantly” . »

In particular, shrimp see current bitcoin prices as attractive and are accumulating them at a rate of nearly 60,500 BTC per month, which Glassnode says is “the most aggressive course in history.” corresponding to 0.32% of the BTC supply per month.

To explain the purge of these tourist-type investors, Glassnode revealed that the number of active addresses and devices has been declining since November 2021, suggesting that new and existing investors are not interacting, not with the network.

Address activity has grown from over 1 million daily active addresses in November 2021 to around 870,000 per day over the past week. Likewise, active devices, a collection of multiple addresses belonging to the same person or institution, are now about 244,000 a day, which Glassnode says is about “the lower end of the typical ‘low activity’ channel.” bear markets. »

“A retention of HODLers is most evident in this metric, as active devices typically trend sideways, indicating a stable user base,” the analysts added.

Growth in new units also declined to bear market declines from 2018 to 2019, when bitcoin’s user base reached 7,000 net new units daily.

The number of transactions remains “stagnant and lateral”, indicating a lack of new demand, but also meaning that incumbents are held back by market conditions.

See also: Institutional investors shorting Bitcoin make up 80% of weekly flows.

To substantiate their point, Glassnode concluded that the number of addresses with non-zero balances, i.e. those that have at least some bitcoin continue to reach all-time highs and currently stand at more than 42.3 million addresses.

Previous bear markets have seen a purge of wallets as the price of bitcoin crashed. But with this metric indicating otherwise, Glassnode says it shows an “increasing level of determination among the average Bitcoin participant.”

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Thomas Estimbre
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