{"id":12038,"date":"2022-07-05T09:44:44","date_gmt":"2022-07-05T09:44:44","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/bitcoin-tourists-have-been-purged-only-hodlers-remain-glassnode\/"},"modified":"2022-07-05T09:44:46","modified_gmt":"2022-07-05T09:44:46","slug":"bitcoin-tourists-have-been-purged-only-hodlers-remain-glassnode","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/bitcoin-tourists-have-been-purged-only-hodlers-remain-glassnode\/","title":{"rendered":"Bitcoin \u2018tourists\u2019 have been purged, only hodlers remain: Glassnode"},"content":{"rendered":"
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So-called \u201cmarket tourists\u201d are fleeing from Bitcoin (BTC), leaving only long-term investors holding and transacting in the top cryptocurrency, according to blockchain analytics firm Glassnode.<\/p>\n

In its July 4 Week Onchain report, Glassnode analysts said June saw Bitcoin have one of its worst-performing months in 11 years, with a loss of 37.9%. It added activity on the Bitcoin network is at levels concurrent with the deepest part of the bear market in 2018 and 2019, writing:<\/p>\n

\u201cThe Bitcoin network is approaching a state where almost all speculative entities, and market tourists have been completely purged from the asset.\u201d<\/p><\/blockquote>\n

However, despite the almost complete purge of \u201ctourists,\u201d Glassnode noted significant accumulation levels, stating that the balances of shrimps \u2014 those holding less than 1 BTC, and whales \u2014 those with 1,000 to 5,000 BTC, were \u201cincreasing meaningfully.\u201d<\/p>\n

Shrimps, in particular, see the current Bitcoin prices as attractive and are accumulating it at a rate of almost 60,500 BTC per month, which Glassnode says is \u201cthe most aggressive rate in history,\u201d equivalent to 0.32% of the BTC supply per month.<\/p>\n

Explaining the purge of these tourist-type investors, Glassnode revealed that both the number of active addresses and entities have seen a downtrend since November 2021, implying new and existing investors alike are not interacting with the network. <\/p>\n

Address activity has fallen from over 1 million daily active addresses in November 2021 to around 870,000 per day over the past week. Similarly, active entities, a collation of multiple addresses owned by the same person or institution, are now approximately 244,000 per day, which Glassnode says is around the \u201clower end of the \u2018Low Activity\u2019 channel typical of bear markets.\u201d<\/p>\n

\u201cA retention of HODLers is more evident in this metric, as Active Entities is generally trending sideways, indicative of a stable base-load of users,\u201d the analysts added.<\/p>\n

Source: <\/em>Glassnode<\/em><\/figcaption><\/figure>\n

The growth of new entities has also dived to lows from the 2018 to 2019 bear market, with the user-base of Bitcoin hitting 7,000 daily net new entities.<\/p>\n

The transaction count remains \u201cstagnant and sideways,\u201d which indicates a lack of new demand but also means that holders are being retained through the market conditions. <\/p>\n

\"\"
\u201cTransactional demand can be seen to move sideways throughout the main body of the bear,\u201d –\u00a0<\/em>Glassnode<\/em><\/figcaption><\/figure>\n

Related:<\/em><\/strong> <\/em><\/strong>Institutional investors shorting Bitcoin made up 80% of weekly inflows<\/em><\/strong><\/p>\n

Driving home its point, Glassnode concluded that the number of addresses with a non-zero balance, those that hold at least some Bitcoin, continues<\/a> to hit all-time-highs and is currently sitting at over 42.3 million addresses.<\/p>\n

Past bear markets saw a purge of wallets when the price of Bitcoin collapsed. Still, with this metric indicating otherwise, Glassnode says it shows an \u201cincreasing level of resolve amongst the average Bitcoin participant.\u201d<\/p>\n<\/div>\n