Bitcoin crash has caused the purge of its so-called ‘market tourists’ as the yellow coin saw an awful monthly place performance in history, with prices trading below -37.9% in June. Bitcoin has now seen a complete purge of its market tourists, leaving the long-term investors/Hodlers as the last line standing – according to blockchain analytics firm, Glassnode.
Bitcoin Crash
The year 2022 seems not to be the year of BTC at all due to Bitcoin crash. In Glassnode July 4th Week Onchain report, says: as the first half of 2022 ended, BTC monthly price has been one of the worst yet in history. Over the last 30 days, BTC’s price has been seen to trade below -37.9% competing with the 2011 bear market.
Just like the U.S inflation estimates remained soared, and the potential recession continues to loom, the crypto market has also remained to be a heavily risky trade.
Bitcoin Tourists Expulsion
Still, according to Glassnode onchain’s data report, the number and activity of network users are approaching a horrible historical bear market territory. Almost all speculative entities and market tourism has been seen to have backed down from the Bitcoin market because of Bitcoin crash.
Glassnode added that, although active entities were on the rise in 2021, last year post-November, they even reached an ATH, and participants started to predict it would only continue to rise going forward. However, this speculation has since dispersed as active entities are now at a downtrend level. Active entities are currently floating around 244k per day, which is a meager amount compared to the surge of entities last year.
Hodlers Now The Last Line Standing
Hodlers/long-term investors now seem to be the only holders of the Bitcoin asset during Bitcoin crash period. As active addresses, entries and transactions continue to plummet, the number of addresses of shrimps – those holding less than 1 BTC, and whales – those with 1,000 to 5,000 BTC upward, continues to grind higher, hitting a new ATH of over 42 Million.
Particularly, Shrimps seem enticed by the current Bitcoin prices and are accumulating it at a rate of almost $60.5k BTC per month, which Glassnode says is “the most aggressive rate in history,” equivalent to 0.32% of the BTC supply per month.
Marginal traders, on the other hand, appear to have backed down and purged from the BTC market over the last 12 months, leaving only a baseload of Holders with the highest resolves remaining. Although few reinforcements have been seen to be coming into the BTC demand side, prices would continue to correct until Hodlers can set the floor – according to Glassnode.
Key Takeaways
The Bitcoin on-chain activity has been concluded to be in the bear market zone, as most Bitcoin tourists continue to back down. Although the demand for blockspace still remains low, the growth of network users is exceptionally still at its best.
Despite the purge of Bitcoin tourists, Bitcoin Hodlers continue to increase, mostly the shrimps. “Coins appear to be flowing into wallets with no history of spending, and the balance growth and exchange withdrawal activity of both Shrimp and Whale cohorts are at a historically aggressive level,” says Glassnode.
