Crypto Crash: ‘Market tourists’ have been purged, says Glassnode
Bitcoin’s activity is firmly in bear market territory after recording one of the worst monthly price performances in its history.
The 37.9 percent price fall in June competes only with the 2011 bear market for the crown of the worst month on record, according to blockchain analytics firm Glassnode.
The most recent network utilisation suggests an almost complete purge of “market tourists” and the only ones left standing are long-term holders, according to Glassnode’s weekly newsletter dated July 4.
Bitcoin prices consolidated this week, maintaining a steady trading range around $20,000, which was the all-time-high in 2017.
Even as exchanges on aggregate continue to see a net outflow of coins, there is meaningful and consistent accumulation taking place by both “shrimps” (those holding less than 1 Bitcoin) and “whales” (those holding more than 1,000 Bitcoin).
Cohorts holding 10 to 10k BTC are almost perfectly neutral, with no notable change to their aggregate holdings.
Shrimps in particular are adding to their balance at 60.46k BTC per month, the most aggressive rate in history. This is equivalent to 0.32 percent of the circulating supply per month.
Explaining the purge of speculative entities and market tourists, Glassnode said address activity has declined by 13 percent from over 1 million a day in November, when BTC prices were at an all-time high, to 870,000 per day today, suggesting little growth in new users and even a struggle to retain existing ones.
Similarly, the number of active entities, a collation of multiple addresses owned by the same individual or institution, is about 244,000 per day, which is languishing at the lower end of the low-activity channel typical of bear markets.
“A retention of HODLers is more evident
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