Glassnode – Investors who are short term holders as well as “market tourists” are done selling off their Bitcoin holdings, according to a report titled; “The Expulsion of Bitcoin Tourists,” by Glassnode, in this case, long term investors are left holding and transacting crypto assets.
This means that the market selloff has come to a halt and Bitcoin is set for a bullish return, possibly speculated to hit $25,000 according to experts.
You should recall that June left Bitcoin in one of its worst performing states in 11 years, recording a loss of 37.9%. Glassnode stated that the activity on the Bitcoin network is at levels concurrent with the deepest part of the bear market in 2018 as well as 2019.
According to the report;
“The Bitcoin network is approaching a state where almost all speculative entities and markets tourists have been completely purged from the asset.”
With this latest information and the current push in the price of Bitcoin above $20,000 at the start of July, a number of analysts believe that the flagship crypto asset could hit $25,000 for the month of July.
This will mean that the market could reclaim its trillion dollar status as fresh demand mounts into the market, having seen that investors aim to take advantage of the current low prices compared to the start of the year.
Points to note
- According to Glassnode, a significant accumulation of Bitcoin is seen in the market, indicating that the balances of investors who are termed shrimps which describes those holding less that 1 BTC, and whales, which describes those with 1,000 to 5,000 BTC were increasing meaningfully.
- Shrimps, 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 “the most aggressive rate in history, equivalent to 0.32% of the BTC supply per month.
- Explaining the purge of these tourists 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.
- 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 entitles, a collection of multiple addresses owned by the same person or institution, are now approximately 244,000 per day, which Glassnode says is around the lower end of the “Low activity” channel typical of bear markets.
- It further stated that a retention of HODLers is more evident in this metric, as Active entity is generally trending sideways, which indicates of a stable based load of users.
- The growth of new entities had also divided to lows from the 2018 to 2019 bear market, with the user-base of Bitcoin hitting 7,000 daily net new entities.
- A lack of new demand was evident by the fact that the transaction count remains stagnant and sideways. This also means that holders are being retained through the market conditions.
- The number of addresses with non-zero balance, those that hold at least some Bitcoin, continues to hit all-time-highs and is currently sitting at over 42.3 million addresses.
Despite these trends, a course for concern remains imminent with the existence of macro-economic headwinds. Central bankers indicated that more rate hikes are possible in the future when asked in a meeting last week on how the global economy was going to deal with a possible onslaught of interest rate hikes.
Glassnode – Investors who are short term holders as well as “market tourists” are done selling off their Bitcoin holdings, according to a report titled; “The Expulsion of Bitcoin Tourists,” by Glassnode, in this case, long term investors are left holding and transacting crypto assets.
This means that the market selloff has come to a halt and Bitcoin is set for a bullish return, possibly speculated to hit $25,000 according to experts.
You should recall that June left Bitcoin in one of its worst performing states in 11 years, recording a loss of 37.9%. Glassnode stated that the activity on the Bitcoin network is at levels concurrent with the deepest part of the bear market in 2018 as well as 2019.
According to the report;
“The Bitcoin network is approaching a state where almost all speculative entities and markets tourists have been completely purged from the asset.”
With this latest information and the current push in the price of Bitcoin above $20,000 at the start of July, a number of analysts believe that the flagship crypto asset could hit $25,000 for the month of July.
This will mean that the market could reclaim its trillion dollar status as fresh demand mounts into the market, having seen that investors aim to take advantage of the current low prices compared to the start of the year.
Points to note
- According to Glassnode, a significant accumulation of Bitcoin is seen in the market, indicating that the balances of investors who are termed shrimps which describes those holding less that 1 BTC, and whales, which describes those with 1,000 to 5,000 BTC were increasing meaningfully.
- Shrimps, 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 “the most aggressive rate in history, equivalent to 0.32% of the BTC supply per month.
- Explaining the purge of these tourists 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.
- 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 entitles, a collection of multiple addresses owned by the same person or institution, are now approximately 244,000 per day, which Glassnode says is around the lower end of the “Low activity” channel typical of bear markets.
- It further stated that a retention of HODLers is more evident in this metric, as Active entity is generally trending sideways, which indicates of a stable based load of users.
- The growth of new entities had also divided to lows from the 2018 to 2019 bear market, with the user-base of Bitcoin hitting 7,000 daily net new entities.
- A lack of new demand was evident by the fact that the transaction count remains stagnant and sideways. This also means that holders are being retained through the market conditions.
- The number of addresses with non-zero balance, those that hold at least some Bitcoin, continues to hit all-time-highs and is currently sitting at over 42.3 million addresses.
Despite these trends, a course for concern remains imminent with the existence of macro-economic headwinds. Central bankers indicated that more rate hikes are possible in the future when asked in a meeting last week on how the global economy was going to deal with a possible onslaught of interest rate hikes.
