According to analyst firm Glassnode, so-called “market tourists” are fleeing the bitcoin (BTC) market, leaving only long-term investors.
In a July 4 weekly report, Glassnode analysts said that bitcoin experienced one of its worst months in 11 years in June with a 37.9% loss in value. In addition, activity on the bitcoin network was at levels that coincided with the deepest part of the bear market in 2018 and 2019:
The bitcoin network is approaching a state where nearly all speculative actors and market tourists are completely excluded from the asset.
That said, Glassnode noted significant levels of accumulation: the balances of “shrimpers” (those with less than 1 BTC), whales with between 1,000 and 5,000 BTC have increased.
Shrimpers, who find current bitcoin prices attractive, accumulated at a rate of 60,500 BTC per month, which Glassnode says is the “most aggressive rate in history,” as it is equivalent to 0.32% of BTC supply per month.
Commenting on the investor purge, Glassnode said that since November 2021, there has been a downward trend in both the number of active addresses and organizations, meaning that new and existing investors are not interacting with the network.
Address activity has dropped from more than 1 million active addresses per day in November 2021 to about 870,000 per day in the last week.
The number of active subjects, which is a collection of multiple addresses belonging to the same person or organization, is about 244,000 per day, which, according to Glassnode, is near the “lower end of the low activity channel” typical of bear markets.
New subject growth has also fallen to the low end of the 2018-2019 bear market, with bitcoin’s user base reaching 7,000 net new subjects per day.
Transaction counts remain “static and sideways,” indicating a lack of new and that market conditions have turned on the owners’ hodgepodge strategy.
As a result, Glassnode concluded that the number of non-zero balance addresses holding few coins continues to reach record highs and now stands at over 42.3 million addresses.