Glassnode, a blockchain analytics firm, says market tourists are fleeing from Bitcoin, leaving only long-term investors holding the popular cryptocurrency. Its analysts in the Onchain Report highlighted that Bitcoin was the worst-performing digital asset in June in 11 years – with a loss of 37.9%.
The report stated that activity on the BTC network is at levels concurrent with the deepest part of the bear market in 2018 and 2019. Glassnode analysts believe Bitcoin’s network is approaching a state where almost all speculative entities and market tourists have been purged from the asset.
However, Glassnode saw significant accumulation levels. It outlined that shrimps – those holding less than 1 Bitcoin, and whales – those having 1,000 to 5,000 Bitcoin were increasing meaningfully. Shrimps see the current Bitcoin prices as attractive, thus, they are accumulating it at a rate of about 60,500 BTC per month. Glassnode described this as the most aggressive rate in history. It stated this to be equivalent to 0.32% of the BTC supply per month. The firm says both the number of active addresses and entities have recorded a downtrend since November 2021. This suggests that new and existing investors are not interacting with the network.
Moreover, address activity has dropped from over 1 million daily active addresses in November 2021 to about 870,000 per day over the past week. Active entities are about 244,000 per day – this is around the lower end of the Low Activity channel typical of bear markets. The report states that the illiquid supply increased by 23,000 BTC in July. This reflects a large-scale movement of coins towards wallets with little to no history of spending.