The Bitcoin (BTC) price plunge has driven out “market tourists” and currently only long-term holders are trading the asset Glassnode. report It was revealed on July 5th.
According to the report, Bitcoin recorded the worst performance month since June 2011, as prices fell by 37.9%.
The record crash wiped out market tourists, short-term Bitcoin investors who were attracted to assets during the last Bull Run.
Shrimp accumulate bitcoin
According to Glassnode, the data on the chain show that the balance of whales (investors holding 1000-5000 BTC) and shrimp (investors less than 1 BTC) increased significantly during this period.
For shrimp, the current Bitcoin price is attractive and affordable. Hodler in this class continues to buy at a rate of approximately 60,500 BTC per month. This is the “most aggressive rate in history”.
The report identified other trends suggesting the end of Bitcoin tourism, such as diminishing demand and diminishing activity on the chain due to diminished investor interest.
The number of active addresses has decreased
Since November 2021, the number of active entities and addresses has been steadily decreasing. According to Glassnode, address activity has dropped from over 1 million per day to 870,000, while active entities are now 244,000 per day.
Glassnode continued to say that overall market participant growth was “slow” as user base growth plummeted to 7,000 per day. This is similar to the lowest bear market prices in 2018 and 2019.
The number of transactions is reduced
The number of Bitcoin transactions is “flat”, indicating that new entry demand for assets is stagnant. The report added that this metric could also mean “estimated retention of user (Hodler) base load”.
Glassnode said the decline in transaction numbers reflects how tourists in the market were kicked out, as the number of addresses with non-zero balances reached a record high of 42.3 million.
Up self-management
According to Glassnode, crypto exchanges recorded an increase in withdrawals and a decrease in deposits as several lending providers suspended deposits and withdrawals.
Exchange reserves are currently at the lowest level last seen in July 2018.
However, as investors withdraw their assets into wallets with no spending history, there is growing interest in self-management.
